The Financial Sector Conduct Authority has concluded its investigation into Livestock Wealth (Pty) Ltd and Livestock Wealth Financial Services (Pty) Ltd, finding no evidence that the companies conducted unregistered financial services business, but imposing administrative penalties related to the misleading display of an FSP licence.
In a statement issued on 22 January, the FSCA said it found that Livestock Wealth and its chief executive, Ntuthuko Shezi, offered, solicited, and advertised investments in agricultural products that are not classified as financial products under the Financial Advisory and Intermediary Services Act. As a result, the regulator said, a financial services licence was not required for those activities.
However, the FSCA imposed administrative penalties of R50 000 each on Livestock Wealth and Shezi after finding that Livestock Wealth displayed a copy of the FSP licence of Livestock Wealth Financial Services on its website. The regulator said this created, or could have created, the misleading impression that Livestock Wealth itself was an authorised FSP, in contravention of the Financial Sector Regulation Act and the FAIS Act.
The FSCA also confirmed that the FSP licence of Livestock Wealth Financial Services has since lapsed because the entity has been dormant for some time. It said the companies co-operated fully throughout the investigation.
The investigation stemmed from an FSCA press release issued in January 2024, in which the regulator warned the public to exercise caution when dealing with Livestock Wealth and Livestock Wealth Financial Services. At the time, the FSCA said it had become aware that Livestock Wealth may be offering members of the public investments in livestock and agricultural products, promising profitable returns on maturity, while not being authorised to render financial services under the FAIS Act.
The regulator also expressed concern that Livestock Wealth appeared to have been using the FSP number of Livestock Wealth Financial Services on its website. As a result, the FSCA said it had commenced investigations into both entities.
In response to the 2024 warning, Livestock Wealth said it was co-operating with the FSCA to understand the reasons for the regulator’s concerns.
The company acknowledged that Livestock Wealth itself was not registered as an FSP but said Livestock Wealth Financial Services was authorised as a Category I FSP to provide advice and intermediary services in respect of insurance products and pension benefits.
Read: ‘Crowd-farming’ platform co-operating with FSCA over licensing concerns
Business model under scrutiny
Livestock Wealth describes itself as a “crowd-farming” platform that facilitates direct investment in agricultural assets, including livestock, farmland, macadamia trees, and vegetable gardens.
The structure of investor returns varies depending on the asset, but typically involves investors purchasing an agricultural product, which is managed by a partner farmer for a defined period before being sold at a higher value.
In January 2024, the FSCA’s concern centred on whether these offerings constituted regulated investment products under the FAIS Act, and whether Livestock Wealth was therefore conducting financial services business without authorisation.
In its January 2026 statement, the Authority its investigation concluded that the agricultural products offered by Livestock Wealth are not financial products as defined in the Act, and that the sale, solicitation and advertising of those products did not amount to unregistered financial services business.
Livestock Wealth’s response
In a statement released on 21 January, Livestock Wealth welcomed the “successful conclusion” of the FSCA’s two-year investigation.
It said the FSCA’s 2024 media release and mention of unlawful activities created the impression that Livestock Wealth was running a Ponzi scheme.
“We made full disclosure to the FSCA about our financial systems, including bank accounts, and accounted for every transaction involving investor funds. The investigation found no unlawful activity by Livestock Wealth regarding their investor products and dealings with investors.”
Livestock Wealth also addressed the issue of the FSP licence display, saying it had submitted evidence to the FSCA demonstrating that the use of Livestock Wealth Financial Services’ FSP number on its website was aligned with a business plan approved by the FSCA in October 2021, when the FSP licence was granted.
The company maintained that it acted in line with the approved business plan. Yet, it decided not to lodge a reconsideration application with the Financial Services Tribunal and has paid the R50 000 fines imposed on Livestock Wealth and Ntuthuko Shezi.
“We concluded that our immediate focus is better directed towards rebuilding trust, strengthening our market presence, and continuing to deliver value to our stakeholders,” Livestock Wealth said.
