South Africa's regulator, the Financial Conduct Authority (FSCA), last week issued a warning to six unauthorised companies or individuals for soliciting customers in South African jurisdictions without obtaining a licence or providing false registration information.

1. Aluma Capital (Pty) Ltd

The FSCA warned the public about a WhatsApp group on social media called Aluma Private Equity Fund 2. The group name is similar to that of Aluma Capital (Pty) Ltd, a licensed financial services provider (FSP number: 46449).

Under the Financial Advice and Intermediary Services Act 2022 (FAIS Act), the individuals behind the WhatsApp group are not entitled to provide any financial advice or intermediary services. The WhatsApp group advertised its financial plans to underprivileged customers, promising unrealistically high returns, and in the process impersonated Aluma Capital (Pty) Ltd.

The WhatsApp group administrator uses the following contact number:

Mobile number: 065 201 6845;

Mobile number: 068 240 3156;

Mobile number: 074 358 5338 (registered to Kevin Fraud).

The licensed company Aluma Capital (Pty) Ltd (FSP number: 46449) has confirmed that it has no association with the WhatsApp group.

2. AVA Invest Inc, AVAINVESTMGOAL (AVA Invest) and “Gugu Mseleku”

The FSCA has received information that AVA Invest is allegedly regulated by the FSCA under number 45984. But according to FSCA records, No. 45984 is the license number of Ava Capital Markets (Pty) Ltd, t/a Ava Trade (Ava Trade Capital), another licensed financial services provider.

Ava Capital Markets said it had no relationship with AVA Invest.

The FSCA has also been informed that an individual known as "Gugu Mseleku" is using Facebook at http://ow.ly/7RZ850MHAkC to attract people to Invest through AVA Invest.

Under the Financial Advisory and Intermediary Services Act 2002 (FAIS Act), AVA Invest and "Gugu Mseleku" are not authorized to provide any financial advisory or intermediary services.

3. Prudential Investment Services CC

The FSCA received information that Prudential Investment Services was providing financial services without authorisation.

According to the information received, Prudential Investment Services solicited money from the public and promised unrealistic returns. On its Facebook page, Prudential Investment Services offers financial advice and intermediation services related to life insurance, retirement plans, bitcoin, currency pairs and stocks.

The FSCA informs the public that Prudential Investment Services is not licensed by the FSCA to provide financial advice and intermediation services locally as a financial services provider.

4. Capital Pro Trade Ltd

The FSCA notes that Capital Pro is providing access to its online platform to the South African public for currency pair and Contract for Difference (CFD) trading.

In addition, Capital Pro provided the client with a document purporting to be its FSCA license number 164384. According to the FSCA registration record, the Financial Services provider licence No. 164384 does not exist.

Companies offering financial services related to currency pairs and CFDS in South Africa are required to obtain an FSCA license. The FSCA informs the public that Capital Pro is not authorized to provide any financial advisory and intermediation services under the Financial Advisory and Intermediation Services Act. Capital Pro also failed to register as an over-the-counter derivatives provider under the Financial Markets Act.

5. Beyond Options FX

The FSCA notes that Beyond FX is providing access to its online platform to the South African public for currency pair and CFD trading.

In addition, the Beyond FX website states that Beyond FX is globally regulated and licensed to provide services in 27 countries, including South Africa.

Entities trading or offering financial products on behalf of South African clients are required to be licensed by the FSCA.

The FSCA informs the public that Beyond FX is not authorized to provide any financial advisory and intermediary services under the Financial Advisory and Intermediary Services Act. Beyond FX also failed to register as an over-the-counter derivatives provider under the Financial Markets Act.

6. Livestock Capital Funds Pty (Ltd)

The FSCA noted that Livestock Capital provided the client with a document purporting to be its FSCA license number 98832.

According to the FSCA registration record, the financial Services provider license number 98832 does not exist.