Always check with the FSCA if you want to take out insurance or invest to ensure the providers are registered to provide financial services.
The Financial Sector Conduct Authority (FSCA) is warning the public to be careful when taking out funeral insurance with Finworth Funeral Insurance, Magoda Funeral Parlour and Grant Julius Funeral Directors and to also be careful when investing with CMC Markets Investment and Mrs Felicitie Jacobs.
The FSCA warns consumers to be cautious when taking up funeral insurance policies issued by Finworth Funeral Insurance.
After the FSCA received a complaint that Finworth Funeral Insurance may be issuing insurance policies that were possibly not underwritten by an authorised long-term insurer, the authority conducted a site visit at its premises in Vereeniging.
The offices were closed and the FSCA says it seemed that nobody has used the office for an extended period and it appears that the entity has ceased operations.
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Magoda Funeral Parlour and Grant Julius Funeral Directors
The FSCA also warns the public against Magoda Funeral Parlour from Khayamnandi in Stellenbosch. The authority also received a complaint that Magoda may be issuing insurance policies that were possibly not underwritten by an authorised long-term insurer.
When the FSCA visited the premises indicated as Magoda’s business address, it found it was a residential property and the residents had no knowledge of the parlour.
In addition, the FSCA warns the public against Grant Julius Funeral Directors from Noord Street in Johannesburg after also receiving a complaint that it may be issuing insurance policies that were possibly not underwritten by an authorised long-term insurer.
When the FSCA conducted a site visit to the registered address of Grant Julius Funeral Directors it was informed that the director had passed away.
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Check with FSCA before taking out funeral insurance
The FSCA says without commenting on the business of Finworth Funeral Insurance, Magoda Funeral Parlour and Grant Julius Funeral Directors or their products and services, it wants to point out that companies can only issue insurance policies in South Africa if they are authorised by the FSCA and the Prudential Authority.
“Conducting financial services business or insurance business without a licence is a criminal offence. These entities are not so authorised and do not hold a licence from the FSCA to conduct financial services business,” the FSCA said in a statement.
If you want to take out funeral insurance, the FSCA says you should always check that the entity or individual is authorised by the FSCA and the Prudential Authority to provide financial products and services and/or insurance policies, as well as what class of insurance business it is authorised to conduct.
You can confirm the status and FSP number of a service provider or someone who claims to be an authorised service provider by calling the FSCA’s toll-free number on 0800 110 443 or do an online search for authorised financial institutions by license category here.
You can also do an online search for a financial institution that is an authorised FSP in terms of the FAIS Act here.
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Also watch out when investing with CMC Markets Investment
The FSCA also warns consumers to be cautious when conducting financial services business with CMC Markets Investment.
“CMC Markets Investment is using the Telegram groups to solicit investment, offering guaranteed and unrealistic returns. Specifically, the entity has been promising returns of up to R448 800 from an initial investment of R48 500 within four days.”
The FSCA says CMC Markets Investment is not authorised in terms of any financial sector law to provide financial services and could not contact CMC Markets Investment for comment. “The public is advised to avoid accepting financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA.”
Authorised financial service providers must clearly display their FSCA authorisation in their documentation. If this is not evident, members of the public are encouraged to investigate further before making any payments or commitments.
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Be cautious when investing with Felicitie Jacobs
The FSCA also warns consumers against engaging in financial services or investment activities with Mrs Felicitie Jacobs, saying it has come to its attention Jacobs is soliciting funds from members of the public for investment purposes, while promising unrealistic returns.
“It appears that she may be offering financial services by presenting investment opportunities with guarantees of profit, describing herself as ‘a trader in volatility and synthetic indices’.
“The FSCA emphasises that Jacobs is not authorised, under any financial sector legislation, to provide financial products or services. Moreover, the FSCA notes that profits from trading activities, especially those involving volatile markets, cannot be guaranteed.
“Despite attempts to engage with Jacobs for her comments, she has not responded. The public is strongly urged to exercise caution when considering investment or trading offers on social media platforms or any unsolicited offers.”
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How to check before you invest
In both these cases, the FSCA also says it strongly urges caution when considering investment or trading offers made on social media platforms or via unsolicited communications. It is highly recommended that you verify that an entity or individual is authorised by the FSCA to provide financial products and services, including for giving recommendations about how to invest.
You should also check what category of advice the person is registered to provide, as there are instances where companies or people are registered to provide basic advice for a low-risk product and then offer advice on far more complex and risky products.
In addition, the FSCA says you should verify that the FSP number the entity or individual offering financial services uses matches to name of the FSP on the FSCA database by calling the FSCA’s toll-free number, doing an online search for authorised financial institution by license category or search for a financial institution that is an authorised FSP in terms of the FAIS Act.
