FANews
FANews
RELATED CATEGORIES

FSB issues a caution on unregulated investment schemes

29 May 2015 FSB

The Financial Services Board (FSB) has received numerous queries relating to KIPI’s registration with the regulator as a Financial Services Provider (FSP) and its legitimacy to provide such services.

The FSB has no record of the scheme’s registration as an FSP, and its business dealings or those of or Mydeposit247 do not fall within the jurisdiction of the institution. Several consumers of financial services and potential investors into the scheme continue to contact the FSB with respect to the business dealings of the scheme.

As with all such queries that fall outside of the regulatory net of the FSB, these queries have been forwarded to the South African Reserve Bank and the National Consumer Commission, two institutions which are duly authorised to investigate and take appropriate action.

Caroline da Silva, the Deputy Executive Officer for FAIS at the FSB says:

“Whenever we receive such queries we first ascertain if there are any regulated entities involved. Where we have no jurisdiction we continue to co-operate with the appropriate regulator so that action can be taken.”

The FSB has seen a significant increase in investigations of investment schemes that resemble “Ponzi schemes” or entities taking investments under the guise of being authorised financial services providers and as such consumers need to be vigilant and avoid participating in this type of schemes.

Investors or consumers who are lured into such schemes carry the risk and obligation to enquire into the merits of the investment before parting with any money.

“It is critical for investors to ensure that they seek the advice of a reputable and accredited financial adviser before parting with any hard earned cash,” says Da Silva.

Please check if the entity or scheme you are dealing with is a registered financial services provider, on the FSB website www.fsb.co.za or call the FSB’s Call Centre on 0800 110 443.

Quick Polls

QUESTION

The shocking crime and motor vehicle accident statistics shared during a recent SHA presentation suggests that group personal accident and personal accident cover are a no-brainer. Do you agree?

ANSWER

Yes
No
Not sure
fanews magazine
FAnews April 2024 Get the latest issue of FAnews

This month's headlines

FAIS Ombud lashes broker for multiple compliance blunders
TCF… a regulatory misfit initiative?
The impact of NHI on medical malpractice insurance
Fixed versus variable: can you have your cake and eat it too?
The future world of work
Subscribe now