The Financial Sector Conduct Authority (FSCA) cautions the public to exercise care when conducting financial services business with individuals claiming to be associated with Faraz Financial Services (Pty) Ltd (Faraz) (FSP 45518).
The FSCA has received information that certain individuals are falsely presenting themselves as being linked to a brand known as Investico.
These individuals have been promoting and soliciting investments in Salik to members of the public. Faraz has confirmed that it has no association with the individuals operating under the Investico name. Faraz further advised that the Investico brand and website were discontinued and replaced by Market10, which now operates through www.market10.net/international.
Faraz has also clarified that it does not promote direct investments in Salik shares but only offers Contracts for Difference (CFDs) on such instruments.
The FSCA attempted to contact the individuals involved for comment but was unsuccessful.
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.