FSCA’s cautions and warnings to the investing public

Posted on by

The Financial Sector Conduct Authority (FSCA) issued the following warnings and cautions to the investing public over the past month.

Aquila Investment Management

The Authority said the public should not do financial services business with Aquila Investment Management (Pty) Ltd (AIM) represented by Cornelius Jansen de Jager and Martin van Staden.

The Authority said AIM, De Jager, and Van Staden are not authorised to provide financial products or services in terms of any financial sector laws.

The FSCA said it received a complaint alleging that AIM received funds from members of the public for forex trading and is not paying returns to investors. The FSCA has started an investigation into the activities of AIM, De Jager, and Van Staden.

Cash Team Trading

The Authority warned the public to be cautious when conducting financial services business with Cash Team Trading.

Cash Team Trading is reported to offer investment opportunities to the public, promising unrealistically high returns, the FSCA said.

Without commenting on the business of Cash Team Trading or its products and services, the FSCA points out that for a company to offer financial products or services in South Africa, it must be authorised by the FSCA. Cash Team Trading is not authorised or registered under any legislation administered by the FSCA.

The FSCA was unable to contact Cash Team Trading for comment.

Empire Profit Machines

The Authority warned the public to be cautious when conducting financial services-related business with Empire Profit Machines.

It has come to the FSCA’s attention that Empire Profit Machines displays a document on its website purporting to be a Financial Services Board (the predecessor of FSCA) licence, with a defunct financial services provider number 50321. The licence falsely claims to be issued to an entity called Base Trade Exchange.

FSP 50321 was issued to Yolies Investment Holdings (Pty) Ltd, trading as Sinelizwe Burial Scheme, and was withdrawn on 16 August 2021.

Empire Profit Machines is not authorised in terms of the FAIS Act to provide financial advisory and intermediary services.

Global Booming Investment

The FSCA warned the public to be cautious when conducting financial services business with Global Booming Investment (Pty) Ltd. It has come to the attention of the FSCA that Global might be conducting unauthorised financial services by offering to trade shares on behalf of the public.

The FSCA said Global is not authorised by the FSCA to provide any financial product or services. Global has not responded to efforts by the FSCA to confirm the nature of its business.

Lyon Assets

The FSCA said the public should be cautious when conducting financial services business with Lyon Assets.

It has come to the attention of the FSCA that Lyon Assets may have solicited deposits from members of the public for the purpose of trading in forex. Lyon Assets is not authorised in terms of the FAIS Act to provide financial advisory and intermediary services. Lyon Assets could not be contacted.

Nano Technologies

The FSCA warned the public to be cautious when conducting financial services business with people purporting to be representing Nano Technologies (Pty) Ltd and using FSP number 17245.

The FSCA said it has received information that people are fraudulently offering financial services to the public, impersonating Nano Technologies and using FSP number 17245.

Nano Technology is a legitimate private company duly incorporated in terms of the laws of the Republic of South Africa, but it is not authorised as an FSP, nor is it a representative of an FSP.

No person has been authorised under FSP number 17245 to provide financial services.

Trading.com

The Authority warned the public to be cautious when conducting financial services business with people purporting to represent Trading.com.

The FSCA has received information that people may be rendering financial services by fraudulently using the name of Trading.com.

The Authority has established that Trading.com is the trading name of UK-based Trading Point of Financial Instruments UK Limited. Trading Point confirmed that it did not conduct business outside the UK and distanced itself from the people using its trading name to provide financial services in South Africa. Trading Point is not authorised or registered under any legislation administered by the FSCA.

Check before you invest

You should always check that an entity or individual is authorised by the FSCA to provide financial products and services, including making recommendations about how to invest.

It is also important to know what category of advice the person is registered to provide, as there are instances where companies or people are registered to provide basic advice for a low-risk product and offer advice on far more complex and risky products.

You can check whether an entity or person is authorised to provide financial products and services by: