<\/p>\n
The Financial Sector Conduct Authority (FSCA) has made final the provisional withdrawal of trading company Mixirite\u2019s licence.<\/p>\n
This means the trader remains prohibited from conducting financial services business or accepting funds from clients.<\/p>\n
The decision follows preliminary findings from an investigation, which found that allowing the company to continue operating would pose a real risk of harm to clients and the general public.<\/p>\n
Its licence was initially suspended in June, with the financial regulator giving Mixirite an opportunity to respond to the provisional withdrawal notice.<\/p>\n
The company was also invited to provide reasons why the FSCA should lift the provisional withdrawal or refrain from making it final.<\/p>\n
\u201cMixirite duly submitted its representations to the FSCA. The FSCA considered the preliminary investigation findings, together with Mixirite\u2019s submissions regarding the provisional withdrawal, and has taken the decision to finally withdraw the licence of Mixirite with immediate effect,\u201d the watchdog said in a statement on Thursday.<\/p>\n
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Read: FSCA provisionally withdraws Mixirite\u2019s licence amid concerns over sales practices<\/p>\n
Last year, Moneyweb linked Mixirite\u2019s operations \u2013 including UMarketPro and Protea Markets, which operated under the company\u2019s FSCA licence \u2013 to the former operations of Banxso and AfriMarkets, as well as their owner, Harel Sekler.<\/p>\n
Read\/listen:
Banxso owner launches legal challenge that stalls liquidation
FSCA issues record fines in crackdown
Banxso placed in final liquidation<\/p>\n
Moneyweb\u2019s investigation found that Protea Markets and UMarketPro benefited from fraudulent social media ads promising automated monthly returns of more than R500 000 from a once-off \u201cinvestment\u201d of as little as R4 300.<\/p>\n
The platforms claimed to be legitimate by referring to their FSCA licence.<\/p>\n
While Mixirite did not oppose the final withdrawal of its licence, it disagreed with the regulator\u2019s preliminary investigation findings.<\/p>\n
\u201cThe FSCA is of the view that Mixirite contravened various financial sector laws in a material manner and that it no longer meets the fit and proper requirements to be a financial services provider.<\/p>\n
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The investigation identified several concerns, including:<\/p>\n
Mixirite\u2019s agents using aggressive, manipulative and high-pressure sales tactics when engaging with clients;
\nFinancial advice being provided by individuals who were not authorised representatives, alongside promises of unrealistic or guaranteed returns;
\nA failure to conduct appropriate suitability and needs analyses;
\nInadequate risk disclosures to clients; and
\nSignificant broader governance concerns.<\/p>\n
The FSCA has confirmed that its probe is at an advanced stage.<\/p>\n
The scope of the investigation has since been expanded to include Complyxpert (Pty) Ltd, Start Stream (Pty) Ltd, Rayn Investments (Pty) Ltd and Advice 365 (Pty) Ltd, as well as the key individuals associated with these entities.<\/p>\n
\u201cGiven the sensitivity of the matters under consideration and the need to preserve the integrity of the investigative process, the FSCA is unable to disclose further details at this stage,\u201d it added.<\/p>\n
Read:<\/p>\n
\u2018AfriMarkets onboards 80 clients daily from fake ads\u2019 \u2013 former employee
\nFSCA warns against agents claiming to help recover lost Banxso funds<\/p>\n
#FSCA #finalises #withdrawal #Mixirites #licence<\/p>\n","protected":false},"excerpt":{"rendered":"
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