The Financial Sector Conduct Authority has issued six public warnings in recent days, cautioning consumers about entities and individuals linked to alleged unauthorised financial services, investment solicitations, and the impersonation of legitimate financial institutions.
The warnings, issued between 3 and 10 September, concern Dineo Zama and Trillionaire Forex Institution, BSM Financial Solutions, DAO1, individuals impersonating Rand Merchant Bank, an individual using the name Fernando Bustamante and operating under the name Capex.com, and BorneMX Market.
Legitimate names and credentials allegedly misused
Several of the warnings involve the alleged use of legitimate financial-sector identities or claims of association with authorised institutions.
One concerns individuals purporting to be associated with Rand Merchant Bank (FSP number 664).
According to the FSCA, individuals using the names “Ayanda and Noah” were using RMB’s name and FSP number to promote and solicit investments from members of the public. RMB’s name was reflected in WhatsApp communications with potential investors.
RMB confirmed that it was not associated with the WhatsApp channel offering investments, the FSCA said. The administrators of the channel did not respond to the Authority’s enquiries.
Another warning concerns an individual or individuals using the name Fernando Bustamante and purporting to be associated with JME Financial Services (Pty) Ltd, which trades as ZA.Capex.com, and Key Way Investments Limited.
The FSCA said Bustamante was operating under the name Capex.com and falsely claiming an association with ZA.Capex.com and Key Way Investments to solicit funds from members of the public, purportedly to recover their investments.
Both JME Financial and Key Way Investments confirmed that they had no association with Bustamante or Capex.com, and his activities were neither authorised nor endorsed by them.
The Authority also said it had been informed that Bustamante was distributing documents bearing the FSCA’s logo and offering to assist people in recovering funds for a fee. The FSCA confirmed that he was neither employed by nor associated with the Authority.
Neither Bustamante nor Capex.com is authorised under financial sector legislation to provide financial services to the public, according to the FSCA, and they did not respond to its enquiries.
The FSCA said BorneMX Market is purporting to be affiliated with Tickmill South Africa, an authorised financial services provider.
According to the FSCA, BorneMX is offering trading in forex, commodities, crypto assets, and indices. Tickmill confirmed that it is not associated with BorneMX.
The FSCA said BorneMX is not authorised under any financial sector law to provide financial services to the public. It also said it had been unable to contact BorneMX because no contact details were available for the entity.
Funds allegedly solicited for trading
The FSCA said it had received information that Dineo Zama and Trillionaire Forex Institution were soliciting funds from members of the public for trading purposes.
The Authority confirmed that neither Zama nor Trillionaire Forex Institution is authorised by the FSCA to provide financial services to members of the public.
However, the FSCA said Zama denied offering financial services. Its preliminary assessment of the complaints is continuing, and it invited anyone who has traded with Zama or Trillionaire Forex Institution to provide information to the Authority.
In a separate warning, the FSCA said it had received information that BSM Financial Solutions was offering financial advice to members of the public.
According to the Authority, BSM Financial Solutions is not authorised by the FSCA to provide financial advice. The business denied rendering financial services, and the FSCA said it was assessing the matter.
The FSCA has also warned the public about DAO1, saying it received information that the entity was soliciting funds from members of the public for investment in cryptocurrency and trading purposes.
The Authority confirmed that DAO1 is not authorised to provide financial services to members of the public. It also said it had been unable to contact DAO1 using the contact details provided for the entity.
Common warning signs
Across the alerts, the FSCA repeated its warnings about unsolicited investment and trading offers, particularly those communicated through social media.
The Authority identified several warning signs that consumers should look out for, including unrealistic or exaggerated returns, offers made through social media, upfront payment requirements, demands for additional money before investments can be returned, fees for training, pressure to act or pay urgently, and vague information about the investment product.
The FSCA also urged consumers not to accept financial advice, assistance or investment offers from individuals or entities that are not authorised by the Authority. Authorised FSPs should clearly display their authorisation status and that consumers should investigate further before making payments where this information is absent.
Check before you invest
The warnings also highlight the importance of verifying not only whether an FSP is authorised, but whether the person or entity approaching an investor is authorised to provide financial services.
To check whether a person or business is authorised by the FSCA to operate as a financial services provider – and to verify their FSP number – the public can:
- Call the FSCA’s toll-free line: 0800 110 443
- Click here to search FSPs authorised under the FAIS Act.
