The Financial Sector Conduct Authority has provisionally withdrawn the licence of Nessfin Investments and Finance Group (Pty) Ltd, marking the latest development in an investigation into companies linked to the MyWealth group.
On 2 May 2025, Nessfin’s authorisation to operate as a financial services provider was suspended, meaning it may no longer conduct any financial services business.
The move follows concerns about Nessfin’s relationship with MyWealth Legatus (Pty) Ltd, a company not authorised by the FSCA.
According to a statement issued by the Authority on 20 June, Nessfin was licensed to provide a limited range of financial services related to crypto assets. However, in August 2024, the FSCA discovered that Nessfin was in possession of funds collected by MyWealth Legatus from members of the public.
The FSCA issued a warning in June 2024, advising the public to be cautious when dealing with MyWealth Legatus, which it suspected of operating without proper authorisation and potentially conducting illegal deposit-taking activities.
Read: FSCA flags MyWealth Legatus
That warning followed a major enforcement action in March 2024, when the FSCA fined MyWealth Method and MyWealth DIAS more than R73 million and debarred director Charl Coetzee for 20 years. The FSCA found that the companies had unlawfully sold shares to the public via the MyWealth Method platform, promising returns of up to 400% – returns that were never delivered. Instead, the FSCA said the entities operated a Ponzi scheme and falsely claimed to be authorised by the regulator.
Read: MyWealth entities fined R73 million and founder debarred for 20 years
The Authority said that withdrawal requests by investors were ignored, resulting in losses of both capital and returns. There was no legitimate financial product or investment generating the promised profits.
The FSCA determined that MyWealth Method had contravened section 7(1)(a) of the Financial Advisory and Intermediary Services Act, and both MyWealth Method and MyWealth DIAS had violated section 11(1) of the Banks Act.
The regulator is investigating whether MyWealth Legatus continued similar unlawful activities. In a statement on 7 June 2024, the FSCA said it had reason to believe the entity “may be carrying on the illegal business activities of MyWealth Method and MyWealth DIAS.” It further noted that Legatus and its directors, Charl Coetzee and Schalk Botha, were being investigated to determine whether they were offering financial services or banking products without registration.
“My Wealth Legatus and its directors apparently influence the investors not to co-operate with the FSCA’s investigation,” the Authority said.
The FSCA investigation into MyWealth Legatus is still ongoing.
The ripple effect has now reached Nessfin, with the FSCA stating that the company likely conducted financial services beyond the scope of its licence. Furthermore, the FAIS Act prohibits FSPs from doing business with unauthorised entities – a provision Nessfin may have breached due to its relationship with MyWealth Legatus.
“The investigation into Nessfin is ongoing, but at this stage, the FSCA has material concerns about Nessfin’s business,” the Authority said. “Thus, the FSCA decided to provisionally withdraw the FSP licence of Nessfin, as it is satisfied on reasonable grounds that substantial prejudice to clients and/or the general public may occur if the licence is not provisionally withdrawn.”
