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FSCA warns the public against Mrs Grace Smith

21 January 2021 The Financial Sector Conduct Authority (FSCA)

The Financial Sector Conduct Authority (FSCA) warns the public against doing any financial services business with a supposed Mrs Grace Smith (Mrs Smith) as she is not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) nor is she authorised to use the FSCA’s credentials.

It came to the attention of the FSCA that Mrs Smith ( or whoever she really is) is using the logo used by the former Financial Services Board to convince members of the public that the former Financial Services Board has intercepted funds flowing into their accounts which are falsely categorised as inheritance or lottery winnings. Members of the public are then asked to provide Mrs Smith with a copy of their ID, address, occupation and cell phone number before the transaction will be allowed to proceed.

Mrs Smith is not employed by the FSCA and it is the FSCA’s view that she is using the logo unlawfully to receive the private information and identification documents of members of the public. It is important to note that the FSCA does not perform such activities.

The FSCA reminds customers who wish to conduct financial services with an institution or person to check beforehand with the FSCA on either the toll free number (0800 110 443) or on https://www.fsca.co.za/Fais/Search_FSP.htm whether such institution or person is authorised to render financial services.

Quick Polls

QUESTION

How to give affordable and appropriate financial advice to the low income market segment. There is little room on a R50 pm policy for advisers to be remunerated for the time it would it would take to educate & fulfil admin function. What is the solution?

ANSWER

[a] Eliminate non-advice sales / telesales
[b] Implement industry standards for non-advice information
[c] Introduce an insurer-funded pro-bono advice network to low income earners
[d] Reinforce the Policyholder Protection Rules
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