The Financial Sector Conduct Authority has kicked off the year with a wave of warnings, alerting South Africans to scams and unauthorised financial services providers. Among the warnings are impersonators of the FSCA itself, operators using the names of legitimate firms, and individuals offering investment or trading opportunities without proper authorisation – many promoted via social media.
The regulator urges the public not to accept financial advice, assistance, or investment offers from anyone not authorised by the FSCA.
“Authorised financial services providers must clearly display their authorisation status in their documentation. If this is not present, it is advised to further investigate before making any payments.”
The FSCA also cautions that unsolicited investment or trading offers should be approached with extreme care.
“Members of the public are advised to act with care when investing their funds, as many fraudsters operate sophisticated scams, the number of which continues to grow.”
FSCA impersonator: Elizabeth McLean
The FSCA warned the public to exercise caution when dealing with Elizabeth McLean, who claimed to be an FSCA employee. Reports indicate McLean contacted members of the public, stating she was acting on instructions from the FSCA Commissioner to assist with unclaimed benefits. In one case, a complainant was told he was entitled to an unclaimed benefit from a dead parent but was required to pay a processing fee.
Despite multiple payments, the complainant never received the alleged benefit and could not contact McLean. The FSCA confirmed that McLean – or anyone claiming to be her – is not employed by the regulator and is using its name and brand without authorisation.
“While the FSCA will, where possible, explore and consider lawful mechanisms for the return of funds for the benefit of victims, it is not mandated to recover investors’ funds. The relevant ombud schemes are mandated to assist with such recoveries. The FSCA will not, under any circumstances, request fees or payments for assistance with unclaimed benefits,” the Authority said.
Impersonators of legitimate companies
The FSCA warned the public about individuals impersonating authorised providers:
- Bidvest Insurance Limited: A Facebook page called Money Mates used Bidvest Insurance’s branding and hashtags such as #BidvestCoverage to promote unsolicited vehicle warranty products. Bidvest Insurance confirmed it is not affiliated with Money Mates and has not authorised it to market or sell its products.
- 27Four Investment Managers (Pty) Ltd: Annelize van Peterson reportedly used the company’s FSP number (31045) to solicit investments promising a return of R6 000 on an initial R300. The company confirmed it is not associated with Van Peterson, who also failed to respond to FSCA enquiries.
The FSCA emphasised that neither Money Mates nor Van Peterson is authorised to provide financial services to the public.
Unauthorised operators
Renzo Marco Torrente and Omne Digital Wealth Management Solutions
The FSCA warned about Renzo Marco Torrente and two associated entities, including Omne Digital Wealth Management Solutions. Torrente reportedly solicited funds from members of the public for investment purposes via Instagram, offering investments in crypto assets. The FSCA confirmed that neither Torrente nor Omne Digital Wealth Management Solutions are authorised to provide financial services. Torrente told the regulator that he ceased operations prior to crypto assets being declared a financial product. The FSCA said it is considering both the allegations and Torrente’s submissions.
Marius Koegelenberg
The FSCA warned the public to exercise caution when dealing with Marius Koegelenberg, who reportedly solicited funds for investment purposes. Without commenting on his business, the FSCA confirmed that Koegelenberg is not authorised to provide financial services to members of the public. He also failed to respond to the FSCA’s enquiries, leaving the Authority unable to verify his activities.
Jeandre Bezuidenhout
The FSCA issued a warning regarding Jeandre Bezuidenhout, who allegedly solicited funds from the public for forex trading purposes. Bezuidenhout explained to the FSCA that his only involvement in financial services was limited to investing on behalf of a small group of friends and family. “Without commenting on the business of Bezuidenhout, the FSCA confirms that he is not authorised by the FSCA to provide financial services to members of the public.”
Bandile Lugayeni
The FSCA cautioned the public about Bandile Lugayeni, who reportedly solicited funds for investments, forex signals, and the provision of forex trading expert advisers. Without commenting on the specifics of his business, the FSCA confirmed that Lugayeni is not authorised to provide financial services to members of the public. Attempts by the Authority to contact Lugayeni using the details provided were unsuccessful.
Elite Krypto Hub
The FSCA issued a warning regarding Elite Krypto Hub, which reportedly solicited funds from members of the public for cryptocurrency investments. The FSCA confirmed that Elite Krypto Hub is not authorised to provide financial services and was unable to contact the entity using the details available.
Jody Ray Low and JRL Forex Institute (Pty) Ltd
The FSCA warned the public to exercise caution when dealing with Jody Ray Low and JRL Forex Institute (Pty) Ltd. The pair reportedly solicited funds via Instagram, offering account management services and forex trading for members of the public. Without commenting on their business, the FSCA confirmed that neither Low nor JRL Forex Institute is authorised to provide financial services. Low responded to the FSCA’s enquiries, stating that he had ceased offering unauthorised financial services.
Watch out for investment scams
The FSCA says South Africans lose millions of rands each year to schemes often disguised as legitimate investment opportunities. Red flags include:
- Unrealistic or exaggerated returns
- Offers via social media
- Upfront payment requirements
- Additional payments demanded to recover investments
- Charges for training or advice
- Pressure to act or pay urgently
- Vague or unclear product information
The regulator advises the public to verify any financial services provider’s authorisation. This can be done by calling the FSCA toll-free on 0800 110 443 or visiting https://www.fsca.co.za/Fais/Search_FSP.htm. Suspicious activity can be reported via the Ethics and Fraud Hotline at 0800 313 626, by email at fsca@behonest.co.za, or online at www.behonest.co.za.
