The Financial Sector Conduct Authority (FSCA) has issued public warnings against three companies offering financial and related services: the Batlokoa Burial Scheme, forex trading platform Mbali FX, and TKL Online Revenue, which appears to be a pyramid scheme. It also warns against a WhatsApp group falsely representing an authorised provider.
Batlokoa Burial Scheme. The FSCA says it suspects the scheme of conducting unauthorised financial services business and breaching certain financial sector laws. Batlokoa Burial Scheme is not authorised to render any financial advisory and/or intermediary services in terms of the Financial Advisory and Intermediary Services (Fais) Act. According to information provided to the FSCA, Batlokoa Burial Scheme claims to be affiliated with Impilo Plus. Impilo Plus has indicated to the FSCA that its relationship with the burial scheme ended in February 2021.
Mbali FX. The FSCA says it has received information that Siphamandla Mpanza and his company Mbali FX may be trading in forex instruments or claiming to be trading in such instruments, on clients’ behalf, promising to multiply their initial investment within a few hours. The FSCA says Mpanza and Mbali FX are not authorised under the Fais Act to provide financial advisory and intermediary services, nor are they registered as over-the-counter derivative providers in terms of the Financial Market Act. The authority considers it not realistic, honest or fair to claim that an investment can be “multiplied within a few hours”.
TKL Online Revenue. The FSCA says that, according to complaints, TKL Online Revenue advertises on social media platforms, offering employment to members of the public. “Members are given access to an application through which they can purchase goods online. With every online purchase, members receive a payment. After a certain number of purchases, members are promoted to a higher level and in turn receive higher payments. Members are obliged to recruit and introduce new members to the scheme in order to progress to higher levels. The activity appears to have the characteristics of a pyramid scheme.” Because pyramid schemes do not fall under the FSCA’s jurisdiction, the authority has referred the matter to other relevant regulators and authorities, for them to take further action if necessary.
WhatsApp group. Beware of a WhatsApp group using the name Aluma Private Equity Fund 2, which is similar to Aluma Capital, a licensed financial services provider. The FSCA says the individuals behind the WhatsApp group are not authorised in terms of the Fais Act to render financial advice and intermediary services. “The group is advertising the scheme to vulnerable clients, promising unrealistic and high returns, impersonating Aluma Capital in the process,” the FSCA says.
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