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Regulator urges consumers to always check FSP credentials

Safeguard yourself and your hard-earned money

FSPs that offer services that are not aligned to the rules of their license, are breaking the law.

Picture: Brian Jackson/123RF
Picture: Brian Jackson/123RF

The Financial Services Conduct Authority (FSCA) has urged consumers to always check the credentials of a financial services provider (FSP) before you buy products or services from them.

FSPs must operate according to the rules of their license, and those that offer services that are not aligned to what they are permitted to do, are breaking the law. This is to protect you and your hard-earned money. 

The renewed warning follows a search and seizure operation on the premises of Leon Goosen Versekeringmakelaars.

After the regulator received information that Dian Wilhelm Goosen of Leon Goosen Versekeringmakelaars was rendering discretionary financial services to clients, for which he was not authorised, it worked closely with the Financial Intelligence Centre (FIC).

After the FIC later issued a directive that no transactions on the account of Goosen be processed, the FSCA conducted a search and seizure operation on the premises of the business. The regulator says the actions were in line with its mission to protect consumers from practitioners who are not licensed to carry out financial services.

“The FSCA warns the public to act with caution when dealing with Mr Dian Wilhelm Goosen, and again reminds consumers who wish to conduct financial services with an institution or person to check if they are authorised to render such a service,” the regulator urged.

This case follows another warning issued earlier that the FSCA had suspended the licence of Afrikan Financial Services after initiating an investigation that it may be misusing its financial services provider (FSP) licence.

“The authority is investigating a number of complaints received, alleging that Afrikan is taking investments from members of the public and promising unrealistic returns ranging from 9% to 50% monthly. It has been further alleged that when clients need to withdraw their funds, Afrikan fails to oblige,” the FSCA said on its website.

The regulator says that Afrikan is only allowed to render advice and intermediary services in respect of long-term insurance products and, according to its licence, is not allowed to engage in intermediary services or render advice relating to investments.

The FSCA is investigating Afrikan and warns that FSPs have to operate according to the law and the provision laid out in their licence at all times. 

  • Consumers can check whether a company is authorised to conduct services and is licensed and registered on the regulator’s website, www.fsca.co.za or through their toll-free number, 0800 110 443.

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