Weekend Argus (Saturday Edition) - - GOODPASTIMES -

mCubed com­plained to the Fi­nan­cial Ser­vices Board (FSB), but the FSB sent mCubed pack­ing and told the com­pany that what it was do­ing was il­le­gal.

Stan­dard Bank was also per­turbed about:

The way in which mCubed took money off­shore via its life li­cence and then in­vested in units in non­com­pli­ant off­shore hedge funds reg­is­tered in the Cay­man Is­lands. The units were in­cor­po­rated into the mCubed lo­cal port­fo­lios. They were not reg­is­tered in the name of the trus­tee, Stan­dard Bank.

The sale of mCubed life as­sur­ance was blocked by the Re­serve Bank and the FSB some years later be­cause of th­ese trans­ac­tions, and mCubed was pe­nalised for con­tra­ven­ing ex­change con­trol reg­u­la­tions.

Reg­u­lar un­rec­on­ciled amounts on mCubed port­fo­lios at month end.

The re­sult was a meet­ing with the then manag­ing di­rec­tor of mCubed unit trusts, Chris Rogers, who was pre­vi­ously in­volved in the launch of the Absa Fund Man­agers money mar­ket fund. At the meet­ing, he fired Stan­dard Bank as the cus­to­dian. The new cus­to­dian was Absa. At the time, Per­sonal Fi­nance also re­vealed that mCubed was pay­ing se­cret kick­backs to fi­nan­cial ad­vis­ers to in­duce them to place client money in mCubed funds.

And, in their sec­ond re­port, the CMM cu­ra­tors say that the South African Rev­enue Ser­vice is ask­ing the cu­ra­tors for R1.4 bil­lion, which, it is sus­pected, “… arises out of a trans­ac­tion be­tween mCubed, Spe­cialised In­sur­ance So­lu­tions Trust (Mau­ri­tius), a Mau­ri­tian ci­ti­zen and CMM”.

The cu­ra­tors say the na­ture of the trans­ac­tion will have to be in­ves­ti­gated, with the money trail be­ing fol­lowed through bank ac­counts and by pe­rus­ing doc­u­ments from mCubed, counter-par­ties and in­ter­ested par­ties.

And the fi­nal twist in the tale was that Bakkes got to open his unit trust fund again, thanks to mCubed, which pro­vided him with its FSB col­lec­tive in­vest­ment scheme li­cence to al­low Bakkes to op­er­ate what is called a white la­bel fund un­der its aus­pices!

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