FSB TRADINGBANKS WARNING
The Financial Services Board (FSB) has issued a warning against conducting financial services business with TradingBanks, domiciled in the British Virgin Islands and purporting to be a registered entity.
TradingBanks is not authorised to render financial services in South Africa and is not a representative of an authorised financial services provider, as required by the Financial Advisory and Intermediary Services Act.
Remember that, before you conduct financial services with an institution or person, you can check beforehand with the FSB on either the toll-free number 0800 110 443 or on the website fsb.co.za as to whether or not the institution or person is authorised to render financial services.
CASE AGAINST MAGNUM OPUS INVESTMENT MANAGERS
The Registrar of Collective Investment Schemes recently referred a case against Magnum Opus Investment Managers to the enforcement committee of the FSB. The referral related to a contravention of the Collective Investment Schemes Act.
Between August 2013 and October 2015, Magnum Opus Investment Managers administered a collective investment scheme despite the fact that the company was not registered as a manager of a collective investment scheme and/or where the representatives were not authorised agents of a registered collective investment scheme. Management agreed to pay a penalty of R50 000 and to rectify the situation by winding up the fund entirely with the assistance of an FSB-approved third party.
DROWNING IN DEBT
The latest quarterly reports released by the National Credit Regulator show that South Africans are still overburdened by personal debt issues.
Statistics show that there are close to 24 million credit-active South Africans. Of these, 10 million are in arrears on their accounts, or are struggling to pay their monthly debt repayments.
DebtBusters, the country’s largest debt counsellor, says it has seen a major uptick in the number of consumers enquiring about and signing up for debt counselling.
April was a tough month, with increases in fuel, electricity, interest rates, sin tax, food and the general cost of living. Wendy Monkley, head of marketing at DebtBusters, is not surprised by this.
“When we assess the debt situation of our clients prior to debt counselling, we can see that many of them need all, if not more than, their monthly salaries just to pay their debt repayments, leaving little or nothing for living expenses.
“That is why they start missing payments. Eventually, ‘robbing Peter to pay Paul’ is the only way they can free up cash flow for buying food and paying rent.
“Almost a quarter of our clients in 2015 had payday loans when they came to us for debt counselling.
“This is an indication of how desperate these people are for cash.”