Warning: FSCA Issues Caution About AfriInvest and MutualWealth
The Financial Sector Conduct Authority (FSCA) has alerted South Africans regarding financial interactions with AfriInvest and MutualWealth, both of which have been offering unrealistic returns of up to R10,000 per day.
In a statement released on Friday, the FSCA pointed out that AfriInvest and MutualWealth purport to trade in cryptocurrency on behalf of the public utilizing artificial intelligence. They have also leveraged the names of well-known figures such as Steve Hofmeyer and Kallie Kriel, along with the Maroela Media brand, to promote their offerings. However, Hofmeyer, Kriel, and Maroela Media have confirmed their lack of affiliation with these companies.
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The FSCA has clarified that AfriInvest and MutualWealth do not have any authorization under South African financial sector legislation to offer financial services to the public. Efforts to contact these entities for comments have been unsuccessful.
The FSCA advises the public to minimize risk by avoiding financial advice, assistance, or investment proposals from unauthorized individuals or entities. Authorized financial service providers must prominently display their authorization status in their documents. In the absence of this information, further inquiry is advised prior to making any payments.
The public should confirm that any entity or individual is authorized by the FSCA to provide financial services and investment advice.
Moreover, the type of advice they are registered to offer should correspond with the complexity of the products they provide.
Members of the public are also encouraged to verify that the financial service provider (FSP) number used by the service provider matches the name in the FSCA database by calling the toll-free number 0800 110 443 or searching for the institution on the FSCA’s website.
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