The Financial Services Board (FSB) has issued a warning to the public with regards to an unauthorised financial adviser Leon Lincoln, and his consulting firm, BrownLinc Consulting.
Manasse Malimabe, head of department for Financial Advisory and Intermediary Services (FAIS) Compliance, told Justmoney: “In the case of Mr Lincoln and his business BrownLinc, the FSB received a number of complaints from members of the community that were concerned about his operations and wanted us to investigate his business.”
Among the complaints are claims that clients have paid Lincoln for his services, but he is now withholding their money.
Malimabe revealed, that due to his non-compliance, the FSB has referred Lincoln and BrownLinc Consulting to the South African Police Service (SAPS) for possible prosecution.
In a statement released by the FSB, it stated: “The FSB received information that Mr Lincoln and BrownLinc are rendering services to the public, including: claiming of pension fund surpluses; registration for UIF benefits; and personal loan applications.
“From the information gathered by the FSB it appears that Mr Lincoln and Brownlinc have been operating in the Gauteng province, as well as in the Western Cape.
“It is the FSB’s view that the abovementioned individuals are conducting an unregistered business and providing advisory and intermediary services without the necessary authorisation. This means that members of the public are not protected,” said the FSB.
Getting the necessary authorisation
Malimabe explained: “In terms of the Financial Advisory and Intermediary Services (FAIS) Act 37 of 2002, no person may act as a financial services provider unless such a person has been issued with a license by the Registrar of Financial Services Providers. A person who wishes to operate as a FSP or intermediary needs to submit an application to the FSB via the FSB’s website or in writing.”
Individuals or companies who are found to be offering financial advisory services without the necessary authorisation will be subject to penalties. Malimabe reveals that the FAIS Act allows for fines of up to R10 million, imprisonment of up to ten years, or a combination of fines and imprisonment.
The FSB stressed that it is important for people to conduct business with authorised financial advisers and service providers. To see if a person or company is registered, you can visit the FSB website or contact them on 0800 110 443.
For any enquiries relating to Lincoln or BrownLinc Consulting, you can contact the FSB on 012 428 8000.