FSCA Flagged Brokers
The top financial regulator in South Africa, the FSCA, has released a warning regarding the following brokers. These brokers had to have done something suspicious in order to be included on this list. Instead of doing business with any of the brokers on this list, we advise you to utilize these evaluations as a resource to learn more about how to protect yourself against financial fraud.
These broker reviews are produced by Broker Complaint Registry to assist you in conducting the essential research on brokers. You can avoid certain financial services that turn out to be fraudulent brokers by doing this. To ensure the security of your online funds, go to this list, which we update frequently.
Financial Sector Conduct Authority (FSCA)
The Twin Peaks model of financial regulation in South Africa includes the Financial Sector Conduct Authority (FSCA). This indicates that one organization is responsible for the safety and security of financial institutions in South Africa, while the other handles consumer protection and regulatory compliance. The second organization monitors financial firms’ compliance with laws and regulations and warns of any suspect activity.
Why Were These Brokers Flagged by the FSCA?
FSCA alerts most commonly occur for the reasons listed below.
- False assertions
- Broker for clones
- Failure to comply
- countless grievances from clients
- Legal action against the broker
If a broker is trying to recruit clients from locations where it lacks a license to operate, operates on a revoked license, or lacks a license altogether, the FSCA will issue a warning.
Fraudsters frequently make false promises regarding the quantity of returns, fees, and other issues. Watch out for grandiose declarations and enormous promises. There are probably some well-known names on the list. This is as a result of how many clone brokers the FSCA has identified. Clone brokers use names that seem similar to those of regulated brokers in an attempt to entice clients away.
Many of these brokers don’t follow the guidelines that apply to financial institutions. These are either federal legislation or particular guidelines that the regulator has provided in order to keep their license. Another major factor that puts brokers on this list is the volume of complaints from customers and the severity of the legal action taken against them.