On Monday the Financial Services Board (FSB) issued a public warning advising consumers against doing business with Capital Management Private Wealth.
“It has been brought to the Registrar’s attention that the entity purports to have been issued with FSP Number 43057 and it promises clients a 25% daily return on their investments,” said the FSB.
The Registrar went further in saying that the authorisation was given to Courtney Capital Management (Pty) Ltd (FSP43057), in October 2011, to perform financial services provider duties.
However, the report confirmed that Capital Management is not linked to Courtney Capital Management (Pty) and for that reason is not authorised to operate under the FSP number 43057.
“Capital Management is not an authorised Financial Service Provider (FSP) and the public is warned to exercise caution when dealing with this entity,” revealed the board.
According to media and stakeholder relations manager of the FSB, Lesego Mashigo, they have not determined how many people have been affected.
He, on behalf of the FSB, reiterated the importance of verifying the credentials of FSPs.
“We encourage the public to always contact our offices before investing in order for us to make sure that the entity they are investing in is an authorised financial services provider and authorised for the product they are marketing. We also urge the public to remember that if it sounds too good to be true, it probably is,” remarked Mashigo.
Consumers are urged to contact the FSB on the toll free number 0800110443 or on the official website.