The Financial Sector Conduct Authority (FSCA) cautions the public to exercise care when conducting financial services business with AAG Life (Pty) Ltd (AAG Life).
The FSCA has received information indicating that AAG Life is conducting insurance business without an underwriter. The Authority confirms that AAG Life is not authorised in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act), to render financial advisory or intermediary services.
While the FSCA does not comment on the specific business activities or products offered by AAG Life, it is important to note that any entity issuing insurance policies in South Africa must be duly authorised by both the FSCA and the Prudential Authority (PA). Conducting financial services or insurance business without the appropriate authorisation constitutes a criminal offence.
The public is strongly urged to exercise caution when considering unsolicited investment or trading offers, especially those communicated through social media. The public is urged to act with care when investing their funds. There are many fraudsters operating scams, and the number is growing. South Africans lose millions of rands every year to fraudsters. Illegal operations are sometimes well-disguised as legitimate operations. The public is advised to be on the lookout for certain tell-tale danger signs when approached by persons offering attractive investment opportunities.
These red flags include:
- Unrealistic or exaggerated returns
- Offers made on social media platforms
- Requirements to pay for services upfront
- Requirements to pay more money to have your investments returned
- Requirements to pay for training
- Claims that you must act and pay urgently i.e. creating a sense of urgency
- Vague information about the investment product.
Members of the public may use one of the following methods to confirm whether a service provider or person is authorised to act as an FSP by the FSCA, including to verify their FSP number:
To confirm whether a person or institution is authorised, contact the FSCA on the toll-free number 0800 110 443 or visit https://www.fsca.co.za/Fais/Search_FSP.htm.
Suspicious activities 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.