MUSA Capital Advisors, who are accused of ripping off the Bakubung-Ba-Ratheo community, allegedly do not even have a licence to operate as financial advisers.
Sunday World reported yesterday that Musa Capital was dragged to court for allegedly swindling the community it was advising of more than R700million in mining shares.
The company, which was appointed to advise the Bakubung tribe in 2007, could now face penalties and its directors might even go to jail for providing this service without a licence.
According to the Financial Services Board (FSB), Musa Capital did not apply for permission to operate in the advice category in its initial application - and should not have advised the Bakubung, who are BEE partners of Wesizwe Platinum.
Gerry Anderson of FSB says Musa Capital will be liable to a fine of up to R1million, 10 years imprisonment, or both.
The founding partner of Musa Capital, Antoine Johnson, says: "This is a regulatory compliance issue, not a legal issue.
"The FSB licensing issue does not affect the validity of the contracts, transactions and investments concluded, entered into or made by or with Musa Capital."
Johnson says their legal advisers contacted FSB about the matter and they advised them to re-submit their application.
"The re-submission was prepared in June and submitted early this month."
He says the company is registered with the FSB as a financial services provider.
Johnson says: "We have had a category 1 licence from the FSB since 2007."
"There are two categories in the category 1 licence, intermediary services and advisory services.
"In preparing our application in 2007 to the FSB for both intermediary and advisory services, our legal advisers omitted to check all of the boxes indicating advisory services," he says.
"When the FSB noticed this and queried it, our legal advisers assured them, in writing, that the application was for both intermediary and advisory services," Johnson says.
He says Musa Capital is in good standing with the FSB.
* CLICK HERE TO READ MORE FROM SUNDAY WORLD *
Musa Capital has no licence
MUSA Capital Advisors, who are accused of ripping off the Bakubung-Ba-Ratheo community, allegedly do not even have a licence to operate as financial advisers.
Sunday World reported yesterday that Musa Capital was dragged to court for allegedly swindling the community it was advising of more than R700million in mining shares.
The company, which was appointed to advise the Bakubung tribe in 2007, could now face penalties and its directors might even go to jail for providing this service without a licence.
According to the Financial Services Board (FSB), Musa Capital did not apply for permission to operate in the advice category in its initial application - and should not have advised the Bakubung, who are BEE partners of Wesizwe Platinum.
Gerry Anderson of FSB says Musa Capital will be liable to a fine of up to R1million, 10 years imprisonment, or both.
The founding partner of Musa Capital, Antoine Johnson, says: "This is a regulatory compliance issue, not a legal issue.
"The FSB licensing issue does not affect the validity of the contracts, transactions and investments concluded, entered into or made by or with Musa Capital."
Johnson says their legal advisers contacted FSB about the matter and they advised them to re-submit their application.
"The re-submission was prepared in June and submitted early this month."
He says the company is registered with the FSB as a financial services provider.
Johnson says: "We have had a category 1 licence from the FSB since 2007."
"There are two categories in the category 1 licence, intermediary services and advisory services.
"In preparing our application in 2007 to the FSB for both intermediary and advisory services, our legal advisers omitted to check all of the boxes indicating advisory services," he says.
"When the FSB noticed this and queried it, our legal advisers assured them, in writing, that the application was for both intermediary and advisory services," Johnson says.
He says Musa Capital is in good standing with the FSB.
* CLICK HERE TO READ MORE FROM SUNDAY WORLD *