FSCA warns consumers about Richard Mouton and JoziEx

The Financial Sector Conduct Authority (FSCA) has issued a public warning against Richard Mouton who invites people to invest on an online trading platform, JoziEx. The FSCA said he is not registered to supply a financial service. JoziEx offers returns of more than 50% within days.

The FSCA warns the public to be cautious when conducting financial services business with JoziEx and Richard Mouton.

Members are recruited through WhatsApp groups and Instagram advertisements, with promises of unrealistic returns. The FSCA says JoziEx requires minimum deposits ranging from R1 000 to R10 000, with a promise of more than 50% profit within days.

Unrealistic returns must be viewed with great suspicion, the FSCA warns. The authority could not contact JoziEx and Richard Mouton for comment.

“While the FSCA does not comment on the specifics of JoziEx and Richard Mouton’s business, it must be noted that JoziEx and Richard Mouton are not authorised in terms of any financial sector law to provide financial services to the public in South Africa.”

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Mouton and JoziEx not affiliated with JSE

The FSCA says JoziEx also falsely claims to be affiliated with the Johannesburg Stock Exchange (JSE). The JSE warned that Richard Mouton and JoziEx are involved in an impersonation scam of the JSE and individuals.

“The JSE says Mouton and JoziEx are not authorised by the JSE and none of the investments or applications are authorised or endorsed by the JSE.”

Mouton of JoziEx in international stock return competition?

According to Benzinga, a website that describes itself as “a leading media and data technology platform dedicated to empowering the next generation of investors”, Mouton is “a distinguished stock analyst and veteran in the South African financial market”. It also said he “confirmed his participation in the Global Stock Return Competition as South Africa’s representative”.

According to the article, Mouton is recognised by the FSCA as an investor “for his exceptional contributions to market stability and growth” and his involvement will likely “enhance the country’s financial reputation globally”.

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Complaints about Mouton and JoziEx

However, the internet does not only contain good stories about Mouton and JoziEx. Someone asked on a Facebook group against scammers if anybody knows anything about a Richard Mouton who is apparently involved in a competition with brokers from other stock exchanges.

This person wrote that returns over a two-month period already yielded more than 800%, but when he wanted to withdraw his funds, he was told that he would have to pay 10% tax. When he asked who the tax is paid to, he was told that it was to ensure that his “earnings are compliant and meet international tax requirements” to ensure that his funds will not be subject to future tax claims and comply with global tax regulations.

He noted that when you accumulated more than 800% returns, the 10% tax amount is bigger than your initial investment. The broker statement this person received said: “Good evening everyone! I am Richard Mouton, an international stock market analyst at the JSE. Currently, I am participating in the International Stock Return Competition. My job is to provide everyone with stock trading advice, help you make a profit in the market and charge a reasonable fee for my services.”

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Avoid unnecessary risk with unregistered people and entities

The FSCA says to avoid unnecessary risk, consumers must not accept financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA. Authorised financial services providers must clearly display their authorisation status in their documentation. If this is not present, you should investigate further before making any payments.

In addition, the FSCA warns consumers that they must exercise caution when considering investment or trading offers on social media, or any unsolicited offers. The FSCA recommends that you verify:

• that an entity or individual is authorised by the FSCA to provide financial products and services, including 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 used matches the name of the FSP registered on the FSCA database.

To confirm the status and FSP number of a financial services provider or someone who claims to be an authorised financial services provider, you can call the FSCA’s toll-free number on 0800 110 443 or do an online search for the authorised financial institution by licence category here.

You can also do an online search for a financial institution that is an authorised FSP in terms of the FAIS Act here.