The Financial Sector Conduct Authority (FSCA) warns the public to be cautious when conducting financial services business with Primewave Capital.
It has come to the attention of the FSCA that Primewave Capital is soliciting funds from members of the public for investment purposes, while promising unrealistic returns.
Members are recruited through Facebook. The FSCA points out that unrealistic returns must be viewed with great suspicion.
While the FSCA does not comment on the specifics of Primewave Capital’s business, it must be noted that Primewave Capital is not authorised in terms of any financial sector law to provide financial services to the public in South Africa.
The public is strongly urged to exercise caution when considering investment or trading offers on social media or any unsolicited offers.
It is highly recommended that the public verify:
that an entity or individual is authorised by the FSCA to provide financial products and services, including for giving recommendations about how to invest.
what category of advice the person is registered to provide, as there are instances where companies or people are registered to provide basic advice for a low-risk product and then offer advice on far more complex and risky products.
that the FSP number utilised by the entity or individual offering financial services matches to name of the FSP on the FSCA database.
What is Fraud? “Fraud” is any activity that relies on deception in order to achieve a gain. Fraud becomes a crime when it is a “knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his or her detriment” (Black’s Law Dictionary). In other words, if you lie in order to deprive a person or organization of their money or property, you’re committing fraud.