FSCA suspicious about stokvel’s business dealings
The Financial Sector Conduct Authority (FSCA) is warning consumers to be cautious about doing any financial services-related business with African United Stokvel on suspicion the entity is participating in unauthorised business and breaching some financial sector laws.
Moneyweb reports that in a statement issued on Monday, the authority confirmed it conducted search and seizure operations at the Bryanston-based entity’s offices in June as part of ongoing investigations into its affairs.
The FSCA says it was prompted to investigate the stokvel’s business activity after receiving a whistle-blower report.
African United has allegedly misled consumers, purporting to be running a digital stokvel and promising to invest client funds into property and telecommunications.
It also claims to have applied for a financial services provider licence, a claim the FCSA has refuted.
‘There are various complaints from clients stating that although they were promised returns, they have not received them,’ said the FSCA.
It said the process of examining evidence will ensue. Once concluded, the FSCA said it might take further steps with law enforcement and prosecuting authorities. Attempts to reach African United Stokvel for comment were unsuccessful.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
