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FSCA fines Pioneer FX and Quintin Moorcroft R2m

The FSCA has jointly fined Pioneer FX (Pty) Ltd and Quintin Moorcroft for rendering financial services without authorisation. It has also debarred Moorcroft for 10 years.

The Authority said, as a result of complaints, it conducted an investigation into Pioneer FX and Moorcroft. It found that Pioneer FX and Moorcroft traded in contracts for difference on behalf of 276 clients between 11 March 2019 and 5 July 2019 through a multi-account manager at IFX Brokers Holdings (Pty) Ltd.

IFX Brokers Holdings, which is licensed by the FSCA, operates the IFX Brokers trading platform.

“Trading decisions made by Moorcroft caused trades to be executed on client accounts. The Authority is of the view that Pioneer and Moorcroft acted as a discretionary financial services provider without having the required authorisation to do so.”

The FSCA said Moorcroft and Pioneer FX contravened section 7(1) of the FAIS Act in that they conducted financial services as defined in the FAIS Act, and/or that Moorcroft caused Pioneer FX to contravene section 7(1), and/or that Moorcroft attempted, or conspired with, aided, abetted, induced, incited or procured Pioneer FX to contravene section 7(1) in a material way.

The FSCA said the aggravating circumstances were that Moorcroft:

  • Provided financial advice to clients relating to future market movements;
  • Has previously contravened section 7(1);
  • Had a substantial number of clients; and
  • His clients lost a significant amount of money.

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One Response to FSCA fines Pioneer FX and Quintin Moorcroft R2m

  1. Lostmoney 5 March 2022 at 11:03 am #

    Why did IFX Brokers allow a unlicensed individual to trade on behalf of so many clients without being licensed??

    IFX Brokers should be fined and have their Lisence’ revoked. They clearly supplied the OTC platform for this crime which is a crime in itself.

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