The Financial Sector Conduct Authority has imposed its largest administrative penalty to date, fining online trading platform Banxso (Pty) Ltd and its directors a combined R2 billion, following an investigation into the company’s operations and the conduct of its key individuals.
In addition, the FSCA has withdrawn the financial services provider licence of Afrimarkets Capital (Pty) Ltd, which, the Authority said, is linked to Banxso through common directorships. Afrimarkets maintains it is a distinct legal entity from Banxso, despite some overlapping stakeholders.
The R2bn penalty imposed on Banxso is the largest in South African financial regulatory history. The FSCA and the JSE imposed fines exceeding R700 million on various individuals and entities related to the Steinhoff insider-trading scandal. This included a fine of R475m levied against the late Markus Jooste.
The FSCA said in a statement on Tuesday the regulatory action followed a multi-year probe. According to the Authority, the investigation concluded that Banxso and its key persons misappropriated client funds, provided false or misleading information to clients and the regulator, promised clients unrealistic returns, and failed to act in the best interests of clients.
It said Banxso materially contravened provisions of the Financial Sector Regulation Act (FSRA), the Financial Advisory and Intermediaries Services Act, the General Code of Conduct for Authorised Financial Services Providers and Representatives, the Financial Institutions (Protection of Funds) Act, the Determination of Fit and Proper Requirements for Financial Services Providers, and the Financial Markets Act Regulations.
Banxso’s directors, Harel Adam Sekler and Warwick David Sneider, were jointly and severally liable for the R2bn penalty, while a further R16m was imposed on the company for other contraventions.
Other fines were R20m for former chief executive Manuel de Andrade, R10m for key individual Mohammed Bux, and R5m for Henry James Simpson.
Sekler, Sneider, De Andrade, and Bux have been debarred for 30 years each, while Simpson received a 10-year debarment.
The FSCA said the penalties reflected the financial benefit derived from the misconduct, the severity and deliberateness of the breaches, and their impact on clients and the financial system. “These factors collectively informed the quantum of the penalties and serve as a strong deterrent against similar misconduct in the market,” it said.
The Authority has reported the matter to the South African Police Service and will provide full assistance in any criminal investigation.
Banxso issued a statement in which it acknowledged the seriousness of the FSCA’s action.
“Our legal teams have been immediately engaged and are conducting a comprehensive review of the findings, the process followed, and the basis for the penalties imposed.
“While we respect the regulatory framework within which we operate, we maintain our position that there are significant issues that warrant thorough legal examination. We are not in a position to detail our legal strategy at this stage, but we can confirm that we are exploring all available mechanisms to address what we believe to be fundamental concerns with this outcome,” the statement said.
Banxso launched its trading platform in South Africa on 1 April 2022. The platform offered contracts-for-difference trading in forex, stocks, indices, commodities, and cryptocurrencies through its BanxsoX and AutoBanxso systems.
Banxso and Afrimarkets Capital have faced allegations related to their business practices, particularly in the realm of deceptive marketing and potentially fraudulent activities.
Media reports have alleged that Banxso and Afrimarkets benefited from deepfake advertisements featuring well-known figures such as Elon Musk and Johann Rupert. These adverts falsely promised substantial returns from a small investment.
The adverts reportedly directed users to platforms such as Immediate Matrix, which then funnelled them to Banxso’s or Afrimarkets’ platforms. Some users claimed they were enrolled automatically, without their consent. Investors have reported significant financial losses.
Banxso and Afrimarkets have denied any links to the deepfake ads, as well as allegations of misappropriating or improperly administering client accounts.
Banxso remains under provisional liquidation following an August 2025 ruling by the High Court in Cape Town, which found that the company’s business model was illegal.
Afrimarkets’ licence withdrawal made final
In a separate statement on Tuesday, the FSCA said it has finalised the withdrawal of Afrimarkets Capital’s licence, which had been provisionally withdrawn on 4 July 2025.
According to the FSCA, Afrimarkets misappropriated client funds, provided advice without appropriate authorisation, issued false or misleading information, promised unrealistic returns, and failed to act in clients’ best interests.
Commenting on the FSCA’s decision, Afrimarkets said it is “exploring all available legal options to ensure a just outcome that favourably protects client interests. We understand this news may cause concern, and we want to assure our clients that we are working diligently to navigate this matter responsibly.”
Afrimarkets said it is engaging with legal and regulatory advisers to assess every avenue available under the FSRA.
How do they calculate an amount like that ?