FSB warns against unauthorised service providers

concept incrementing finance with moneybox

concept incrementing finance with moneybox

The Financial Services Board (FSB) warned on Thursday that four institutions offering services to the public were not authorised.

In a statement, the FSB said people should take caution when dealing with MD Fund, which claimed to participate in forex trading, Stockpair.net which purported to deal in binary options, DMD Capital trading as Profit Trading and Capital Loans.

It said a Facebook post made during 2016 said MD Funds offered daily returns of 0.75 percent to 1.5 percent. But the company was not an authorised financial services provider despite telling potential clients it was registered “under all the laws of South Africa”.

The FSB said a South African citizen had invested in binary options with Stockpair.net but could not get his funds back. According to the entity’s website, it is located in Estonia and Belize. It is however not authorised in South Africa.

In a similar case, Profit Trading and Ntokozo Ndlovu were conducting an unregistered business and providing advisory and intermediary services without the necessary authorisation. Profit Trading’s licence was withdrawn on 02 September 2016.

Capital Loans was offering personal and various other types of loans to members of the public, also without permission.

“The FSB again reminds consumers who wish to conduct financial services with an institution or person to check beforehand with the FSB …as to whether or not such institution or person is authorised to render financial services,” the board said.

African News Agency (ANA)

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