FSB warns of bogus advisers
The Financial Services Board (FSB) has issued a warning to be cautious when purchasing financial products, and always verify that the advisers and intermediaries you deal with are authorised to advise you.
Recently, two individuals – who only give their first names, Mazwi and Sibusiso – have been misrepresenting themselves as authorised representatives acting on behalf of Momentum Investment Holdings, an entity they claim is registered as a financial services provider.
Their modus operandi involves producing a fake certificate to dupe prospective investors. The duo then tries to sell a “two-week-only special”, where the investor has the opportunity to invest money over a period of 12 to 15 days and get a “double return” on their initial investment.
MMI Holdings, a registered entity that provides financial services products through Momentum, one of its operating divisions, says it has no connection with Momentum Investment Holdings.
It has also indicated that the product offered by the two individuals is not an authorised Momentum product, and that these bogus representatives are not authorised to sell products and offer advice on behalf of Momentum.
You can check if the representative or entity you are dealing with is authorised in terms of the Financial Advisory and Intermediary Services Act on the FSB’s website, fsb.co.za, or phone the call centre on 080 020 2087.