The FSCA has fined Moselane Mahlangu and Forex Tutorials (Pty) Ltd a total of R2.5 million for trading in forex derivatives on behalf of investors, without a licence.
Mahlangu, who was fined R1.5m, was also debarred for 15 years.
In a statement, the FSCA said an investigation found that, from 1 June 2019 to 18 May 2021, Mahlangu, through Forex Tutorials, solicited and accepted mandates to trade forex on behalf of members of the public, promising returns of 10% a month.
Mahlangu and Forex Tutorials were not authorised to conduct financial services as defined in the FAIS Act.
A substantial aggravating factor was that Mahlangu did not trade with all the funds he received from investors but misappropriated at least R1m, the FSCA said.
The Authority accepted as mitigating factors that neither Mahlangu nor Forex Tutorials had previously contravened a financial sector law, and Mahlangu conceded his contravention and co-operated during the investigation.
