Financial Services Providers – FSCA warns public to always check authorisation

In various press releases last week the FSCA has advised members of the public to always check that an entity or individual is registered with the FSCA to provide Financial Advisory & Intermediary Services as well as what category of advice it is that the entity is registered to provide.

“There are instances where persons are registered to provide basic advisory services for a low risk product and then offer services of a far more complex and risky nature,” the FSCA states in one of the releases. As a result the FSCA again reminds consumers 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 the website as to whether or not such institution or person is authorised to render financial services.

Some of the latest press releases include:

A warning to the public to act with caution when dealing with KHM Book Keeping Services (Pty) Ltd (KHM Book Keeping) and Mr. Kristie Govender (Mr. Govender). Click here to download the press release
A warning to the public to act with caution when dealing with Success. The FSCA suspects Successfxoption of conducting unauthorised financial services business and breaching various financial sector laws. Click here to download the press release.

Earlier this year the public’s attention was also drawn to the fact that the Praesidium Global Fund and/or the Praesidium Mauritius Managed Fund, which were being offered by Praesidium Advisory to members of the public, were not approved by the FSCA. The FSCA has just published a media release to confirm that they have reached an agreement with the current directors and the erstwhile director of Praesidium Advisory. As a result, an enforceable undertaking has been signed by all the parties and accepted by the FSCA.

“In terms of the enforceable undertaking the parties agree to repatriate all Praesidium client funds held offshore to a South African bank account for distribution to the clients of Praesidium. The parties further agreed to the appointment of a statutory manager in terms of section 5A of the Financial Institutions (Protection of Funds) Act, 28 of 2001 to distribute these funds. These steps were taken by the FSCA in an attempt to preserve any clients’ funds that may still be available,” the FSCA reported. It notes that it is unlikely that the majority of client funds will be recovered.

Click here to download the press release for more information.

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