The Financial Sector Conduct Authority (FSCA) is the market conduct regulator of financial institutions in South Africa. The FSCA is an independent and impartial statutory body performing the public function of market conduct regulation and supervision of the financial sector.
Here are the latest sanctions imposed by the FSCA:
The FSCA fined Mr. Mareo Nel R1 million and banned him for 15 years for providing unauthorized financial services. Nel traded forex derivatives without proper authorization. The public is advised to verify financial service providers’ credentials using FSCA resources before engaging with them.
The FSCA fined and banned key persons of N-e-FG for up to 30 years after finding they invested clients’ funds without proper authorization and in unregulated entities. The investigation revealed conflicts of interest and breaches of financial regulations. The FSCA may assist with related criminal cases.
The FSCA fined Mr. Maudi Martin Lentsoane and Lehum? Securities R1 million, debarred Lentsoane for 12 years, and revoked the firm’s license after clients’ complaints and regulatory breaches. They are now banned from providing financial services or acting as key persons in financial institutions.
The FSCA found Gundo Wealth Solutions and Mr. Ralliom Razwinane guilty of breaching financial laws and giving improper investment advice. Razwinane was fined R3 million, banned from financial services for 10 years, and Gundo Wealth’s license lapsed after liquidation. The public is urged to verify financial advisors’ credentials.
The FSCA fined Adell van Wyk R1 million and banned her for 15 years, and fined Wenru (Pty) Ltd R100,000 for processing payments without client consent. The public is urged to verify financial service providers’ authorization using FSCA resources before investing or seeking financial advice.
The FSCA fined Shaheen Khan R4.5 million and banned him for 10 years for unauthorized financial services. The public is urged to verify financial service providers’ authorization using FSCA resources, including a toll-free number and online searches, to avoid unregistered or risky financial advice and services.
The FSCA fined and banned Mr. Luan Krige for ten years for providing unauthorized forex trading advice, violating the FAIS Act. The public is warned to avoid unlicensed financial services and to verify FSCA authorization before investing, using official FSCA resources to check credentials and avoid scams.
The FSCA investigated BHI Trust and Craig Roy Warriner for unauthorized financial services from 2013-2023. Warriner is banned for 30 years from financial services roles. The public should verify FSCA authorization before engaging with financial providers. Contact details and online resources for verification are provided by the FSCA.
The FSCA fined F A Allard and Sons Funeral Undertakers, Mr. Allard, and Mrs. Roberts for running unregistered insurance and financial services. Penalties totaled R120,000. The business has since complied, and the public is urged to verify financial service providers’ authorization before using their services.
The FSCA found the Praesidium Group and its directors broke financial laws, operated without proper licenses, and misused client funds, resembling a Ponzi scheme. Key individuals were banned from the industry and fined. The matter will be reported to criminal authorities for likely fraud and theft.
The FSCA fined Poneso Employee Benefits and Poneso Consulting R200,000 each for not keeping client funds separate from March 2016 to October 2018, violating financial sector rules. Both companies have since corrected the issue. The full enforcement order is available from the FSCA.