The Financial Sector Conduct Authority has imposed a fine of more than R2.1 million and a 20-year debarment on an individual who operated an unauthorised forex investment scheme.
In May last year, the FSCA warned the public to act with caution when doing financial services-related business with Greyshore Investments (Pty) Ltd and Ashley Mmachewe Mphaka. The Authority said it had reason to believe that Greyshore and Mphaka might be conducting unauthorised financial services business and might have breached certain financial sector laws.
Yesterday, the FSCA said its investigation concluded that Mphaka solicited deposits from members of the public with the promise to manage their trading accounts and/or trade on their behalf.
The Authority has handed its investigation report to the South African Police Service, and it will “actively assist” the SAPS if requested.
The FSCA found that Mphaka contravened section 7 of the Financial Advisory and Intermediary Services Act by rendering financial services without being authorised to do so. Mphaka also contravened section 139 of the Financial Sector Regulation Act (FSRA) by failing to co-operate with the investigators during the investigation.
As a result, the FSCA has imposed an administrative penalty of R2 113 225 on Mphaka.
In addition, Mphaka is prohibited for a period of 20 years from:
- providing or being involved in the provision of all financial products or financial services, as defined in all financial sector laws for which the Authority is the responsible;
- acting as a key person of any financial institution as defined in the FSRA; and
- providing any services to a financial institution, whether under outsourcing arrangements or otherwise.
The FSCA advised members of the public not to conduct financial services business with people who are not authorised.
