The Financial Sector Conduct Authority (FSCA) has provisionally withdrawn the licence of Mixirite (Pty) Ltd FSP 52110 (Mixirite).
The FSCA is concerned that there is a real risk of harm to clients and/or the general public if Mixirite continues its operations as a financial services provider. The provisional withdrawal is based on preliminary investigation findings regarding the activities of Mixirite.
The FSCA is, amongst others, concerned about the apparent aggressive, manipulative and high?pressure sales techniques used by Mixirite’s agents when engaging with clients; the provision of financial advice by individuals who are not authorised representatives; promises of unrealistic or guaranteed returns; the failure to conduct appropriate suitability and needs analyses; and the failure to provide adequate risk disclosures to clients.
The consequence of the provisional withdrawal is that Mixirite is unable to conduct any further financial services business or receive any additional funds from clients.
The FSCA emphasises that this is a provisional withdrawal of Mixirite’s licence based on preliminary investigation findings. Once the investigation is finalised, the FSCA will consider the findings and any submissions made by Mixirite. In the interim, Mixirite has been afforded an opportunity to provide reasons why the provisional withdrawal should be lifted or not made final.
The investigation remains ongoing and may encompass additional aspects arising from the information obtained to date. In light of the sensitivity of the matters under consideration and to preserve the integrity of the investigative process, the FSCA is limited in the detail it can disclose at this stage.
The FSCA will update members of the public in due course regarding the investigation and its decisions in this matter once the investigation has been finalised.