Uncategorized 31.7.2013 01:17 pm

FSB’s Zantech warning ‘may be too late’

Image courtesy stock.xchnge

Image courtesy stock.xchnge

The Financial Services Board (FSB) has warned the public not to conduct financial services business with Zantech Trading, a scheme that offered “dividends” of 25% a month.

But the warning may be too late. It comes more than four months after CitiBusiness warned readers against Zantech. It also comes a few weeks after the scheme’s apparent collapse.

A glance at Zantech Trading’s Facebook page makes it clear that the scheme is experiencing problems. For the past few weeks, members have been complaining of late dividend payments.

On Monday a member noted that the offices were closed. One member wrote: “It’s over guys! But are we ever going to get our money back?”
Calls to Zantech’s head office in Durban went unanswered.

The FSB says that its records show that Zantech Trading is not an authorised Financial Services Provider (FSP).

“Contrary to Zantech Trading’s claims, the FSB has not granted a temporary licence to this entity,” notes the FSB in a media statement. “The FSB also categorically denies that the entity has been audited by the FSB. As an unauthorised FSP, the activities of Zantech Trading are also not authorised. However, an investigation into the entity has been launched by the South African Reserve Bank.”

The Reserve Bank has acknowledged but not responded to an invitation to comment on Zantech Trading. For more, readers can access the article on http://www.- moneyweb.co.za/moneyweb-special-investigations/25amonth-investment-scheme-flourishes.

The FSB also dispelled rumours that Zantech had acquired the shares of Siyaya Finance Brokers, with FSP number 22587.

“The FSB has contacted the owner of Siyaya Finance Brokers (Pty) Ltd, who has confirmed that he has not sold his business to Zantech Trading. Siyaya Finance Brokers (Pty) Ltd’s licence was also provisionally withdrawn by the FSB on 26 July 2013 due to non-compliance with legislation,” reads the media release.
The FSB says that persons rendering financial services without a licence or without being appointed as representatives of a licenced entity are acting in contravention of the Financial Advisory and Intermediary Services Act, 37 of 2002. Such contravention is an offence which carries a heavy fine or period of imprisonment.
The FSB invites consumers to check if a financial services provider is licensed, either on www.- fsb.co.za, or by calling its toll-free number, 0800-110-443.

 

 

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