The Financial Sector Conduct Authority has issued warnings about two syndicates operating on WhatsApp, which are misleading investors by falsely claiming connections to the Johannesburg Stock Exchange and the FSCA.
One syndicate involves Octodec Invest Ltd, which the FSCA says is claiming affiliation with the JSE. The regulator stated that Octodec is using the JSE’s name without approval, creating what the FSCA describes as the false impression that its activities are sanctioned by the stock exchange.
“JSE legal counsel has confirmed that Octodec is not in any way linked to the JSE. Octodec’s unauthorised use of the JSE trademarks is in contravention of section 4(2) of the Financial Markets Act, which prohibits a person who is not a licensed exchange from purporting to be an exchange or behave in a manner or use a name or description which suggests, signifies or implies that there is some connection between that person and an exchange,” the FSCA stated.
The entity is using the name similar to “Octodec Investments Limited”, a duly JSE-listed entity; together with the JSE’s name without any approval. Octodec Investments Limited has further distanced itself from the fraudulent syndicate “Octodec Invests Ltd”.
The JSE has confirmed that the unauthorised use of Octodec’s name in this manner or in connection with the application/platform referred to as “AIJSE” is not linked to the JSE nor Octodec Investments Limited and that use thereof is part of an ongoing impersonation criminal syndicate involving the unauthorised use of JSE registered trademarks.
The Authority added that Octodec is operating without proper authorisation and is fraudulently using the JSE’s name to mislead the public. that the entity is using the names of both Octodec and the JSE without proper authorisation and is fraudulently using the JSE and Octodec’s names to conduct business and mislead members of the public.
“The FSCA urges anyone doing business with this entity to be extremely cautious and always obtain proof of any business dealings for future reference,” it said.
The regulator also warned about a WhatsApp group called A503 Stock Growth Community, which claims links to the FSCA and the JSE. According to the FSCA, the group, which has about 222 members, is led by Mark Randall, whom the FSCA says falsely claims to be the chief investment officer: information services at the JSE.
The FSCA stated that Randall is promoting illegitimate investment schemes and unlawfully soliciting funds.
“The JSE has officially confirmed that neither the group nor its creators have any association with the JSE,” the regulator added.
According to the FSCA, the WhatsApp group is operating without authorisation and misrepresenting itself by using the FSCA and JSE names to solicit funds.
Furthermore, the unauthorised use of the JSE’s name and trademark contravenes section 4(2) of the Financial Markets Act.
FSCA urges caution and verification before transferring funds
The FSCA has strongly advised that members of the public exercise extreme caution when transferring money to any bank account, including verifying that the account is registered in the name of the entity it claims to represent and requesting supporting documentation as proof.
The regulator also recommended that individuals confirm whether an entity or person is authorised by the FSCA to provide financial advisory and intermediary services and understand the specific category of advice they are licensed to offer. The FSCA noted that some individuals may only be registered to provide basic advice on low-risk products but may unlawfully offer services involving higher-risk financial instruments.
The FSCA reiterated the importance of conducting due diligence before engaging with any financial services. The regulator suggested that the public verify:
- That an entity or individual is authorised by the FSCA to provide financial products and services, including investment recommendations.
- The specific category of advice for which the person is registered.
- That the FSP number used matches the name listed on the FSCA database.
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 use any of the following options:
- Call the FSCA’s toll-free line: 0800 110 443
- Search licensed financial institutions by category: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-EntitiesPersons.aspx
- Search authorised FSPs under the FAIS Act: https://www.fsca.co.za/Fais/Search_FSP.htm
Im already a victim of the so called JSE, with a WhatsUp platform, symphonies large sums of money from unsuspicious clients
Hello
I am already a victim too, I have lost more than hundred thousands , I am still to lay a criminal charge.
I am a victim too, last month I lost hundred thousand which no way I will get I must pay back now/credit card