Withdrawal of licences of Dynamic Wealth companies

1. In terms of section 9(2)(d) of the Financial Advisory and Intermediary Services Act, No 37 of 2002, the Registrar of Financial Services Providers (Registrar) hereby makes known that he has, with immediate effect, withdrawn the authorisations issued to the following companies:

DYNAMIC WEALTH MANAGEMENT (PTY) LTD

(FSP No 559)

DYNAMIC WEALTH STOCKBROKERS (PTY) LTD

(FSP No 7652)

2. The companies referred to have been notified in writing of this decision of the Registrar and given the reasons therefore.

3. Briefly, the reasons for the withdrawal are as follows:

(a) The so-called Association business of the companies in the form of “clubs” was open to the public and conducted in contravention of the law.

(b) The companies had over a substantial period of time misrepresented to the Registrar that their Association business was not open to the public.

(c) The companies had in many instances made themselves guilty of contravention of the law, defiance or circumvention of regulation and the directives issued by the Registrar.

(d) The companies have failed in their fiduciary duties towards their clients, neglected the interests of clients, have treated clients unfairly and in several known instances have caused their clients to suffer severe loss.

(e) The Registrar’s experience with the companies has left him as regulator without any confidence in the board of directors and executive management of the companies.

(f) In many instances the companies are either unwilling or unable to repay their investors what had been entrusted to them.

(g) The above conclusions were drawn after an in-depth inspection of the business affairs of the company, in which the JSE Ltd also participated, and a proper administrative process during which representations by the companies had been considered.

4. The following abbreviated terms have been attached to the above withdrawals:

(a) All the companies’ clients and product suppliers are to be advised immediately of the withdrawals.

(b) The companies are with immediate effect prohibited from conducting any business or accepting any new business.

(c) All invested funds must without delay be returned to the persons from whom they were received.

(d) Any outstanding business must, after consultation with the relevant clients, be transferred to another financial services provider.

(e) The Registrar must be kept informed of progress.