Latest warnings against unauthorised operators soliciting ‘investments’

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The Financial Sector Conduct Authority has issued warnings to the public about unauthorised financial operators soliciting investments under misleading pretences. These individuals and entities promise unrealistic returns while lacking the necessary authorisation to offer financial services.

Motsamai David Marumo and FX Trading Revolution

Motsamai David Marumo and FX Trading Revolution LLC have come under scrutiny by the FSCA for soliciting funds from the public with promises of guaranteed monthly profits of 10%. The Authority warns that such assurances are unrealistic, because trading in forex and shares inherently carries risk and cannot ensure consistent profits.

Marumo and FX Trading Revolution LLC are not licensed under any financial sector law to provide financial products or services. Engaging in forex derivative or share trading on behalf of clients requires an authorised financial services provider licence, which they do not possess.

Given Katlego Ditibane (King of VIX 75)

Given Katlego Ditibane, who may also be operating under the alias “King of VIX 75” on Instagram, has been flagged for engaging in similar activities.

He allegedly offers “account management services” and a crowdfunding investment scheme, promising substantial financial gains. The FSCA emphasises that investment profits cannot be guaranteed, and any offers promising high returns should be treated with extreme caution.

Ditibane is not authorised to provide financial services in South Africa. The FSCA advises the public to seek investment advice and services from registered financial entities, which must provide their authorisation status in their documentation. Ditibane was unavailable for comment.

Thato Sigegede Moloi and Raindrop Brokers

The FSCA has also raised concerns about Thato Sigegede Moloi and Raindrop Brokers (Pty) Ltd, who falsely claim to be associated with Executive Underwriting Managers (Pty) Ltd (EUM), a registered FSP.

They allegedly offer underwriting services to funeral parlours and burial societies under EUM’s name without authorisation. EUM has denied any relationship with them and confirmed that their name and FSP number are being used without permission.

As with the other cases, Moloi and Raindrop Brokers are not authorised to provide financial products or services in South Africa.

Brandes Investments impersonation scam

The FSCA has also warned the public about scammers operating a WhatsApp group falsely claiming to represent Brandes Investments, an Irish company. These individuals solicit funds while promising unrealistic returns, namely R6 000 from an investment of R2 500 with a short time.

Brandes Investments was authorised to provide financial services in South Africa until it requested to lapse its licence on 19 April 2021. Brandes Investments is, therefore, no longer authorised to provide financial services in South Africa.

Brandes Investments is not associated with the individuals administering the WhatsApp group. The administrators of the group could not be reached for comment.

Advisory to the public

The FSCA urges extreme caution when approached with unsolicited investment opportunities, particularly those found on social media. To avoid financial fraud, individuals should always confirm whether a financial service provider is registered by checking the FSCA’s database.

Members of the public should always check the following:

  • That an entity or individual is authorised by the FSCA to provide financial products and services, including for providing recommendations about how to invest.
  • The category of advice the person is registered to provide, because there are instances where companies or people are registered to provide basic advice for a low-risk product but advice on far more complex and risky products.
  • That the FSP number used by the entity or individual offering financial services matches the name of the FSP on the FSCA’s database.

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