The Financial Services Board (FSB) has issued a warning today that the public should not conduct financial services business with Motsoto’s Trading and Investment, situated in Springs, Gauteng.
The FSB said that Motsoto’s Trading and Investment is not authorised as a financial services provider and is not a representative of an authorised financial services provider.
Justmoney has made attempts to contact Motsoto’s director, Lucky Motsoto and his wife Zanele has not received any response.
Motsoto’s claims to be registered by the FSB on its Facebook page and lists its registration number as 44542. However, the FSB said the licence number it utilises is not an authorised licence number. “They are advertising that they are registered by us but they are not,” said a spokesperson with the FSB.
The FSB added in its statement that ‘persons rendering financial services without a licence or without being appointed as representatives are acting in contravention of the Financial Advisory and Intermediary Services Act, 37 of 2002. Such contravention is an offence which carries a heavy fine or period of imprisonment’.
Too good to be true?
The FSB spokesperson explained that the statement was also issued after a complaint as lodged against Motsoto’s. “The company claim to make a 30% return on your investment within 70 days and they don’t tell you how they are investing their money,” she said. According to reports, Motsoto’s has attracted millions of rands in investment.
She added that Motsoto’s advertises its investment proposals and training programmes in local township newspapers. The spokesperson could not verify whether Motsoto’s could be classified as a pyramid scheme.
Motsoto’s also claims on its Facebook page that it provides full training on the stock market. It said that its ‘basic course covers all the theory about the stockmarket and JSE history preparing you to write and pass your South African Institute of Financial Markets (SAIFM) exams’. At the time of writing, the page which promotes its trading academy has over 150 friends on Facebook.
But when Justmoney called the SAIFM, a spokesperson said: “SAIFM does not provide lectures. Lectures are provided by outside companies that are not affiliated, accredited or endorsed by SAIFM in any way. SAIFM does not keep a list of trainers and does not disseminate contact details of trainers. Under no circumstances should it be assumed that SAIFM recommends the services of any company and learners engage the services of any trainer entirely at own risk. The database of questions of SAIFM is confidential. Therefore no trainer will be able to guarantee that his or her training will ensure that you pass the exam. Your own efforts alone will ensure that.”
Is the investment legitimate?
If you are in any doubt as to whether a company promoting an investment scheme you can check its legitimacy with the FSB. Call them on their toll free number (0800110 443) or to research the company on its website. One quick call or online check could verify whether or not an institution or person is authorised to render financial services and could save you from losing your hard earned cash.