The FSCA warns the public against L’aggregation
The Financial Sector Conduct Authority (FSCA) warns the public against doing any financial services business with L’aggregation which is not authorised to render any financial advisory and/or intermediary services in terms of the Financial Advisory and Intermediary Services Act (FAIS Act).
According to L’aggregation’s website, it was established in 2015 and is a trading platform that offers trading in forex, metals, stocks, exchange goods, stock indices, cryptocurrencies and contracts for difference (CFDs) and has 256 500 open trading accounts, 84 million executed trades, more than 200 trading instruments and $70 million daily trading volume.
L’aggregation claims on its website to be regulated and authorised by the FSCA under licence number 27/927/TB/2S.
The authority says that L’aggregation is not authorised as a financial services provider and requires a South African financial services provider licence from the FSCA to conduct business with South African citizens. It is therefore highly likely that they are conducting unregistered business, which is a criminal offence.
The website also claims that L’aggregation is regulated and has authorisation in Australia and Mauritius. Its website states that it is a registered company at Icon Building, Office 1789, Belize City, Belize.
Of importance is that L’aggregation still requires a South African licence to operate locally. A South African licence will subject L’aggregation to codes of conduct that are designed to protect investors against fraud and misconduct.
Members of the public should always check that an entity or individual is registered with the FSCA to provide financial advisory and intermediary services and what category of advice it is that the entity is registered to provide. There are instances where providers are registered to provide basic advisory services for a low risk product and then offer services of a far more complex and risky nature.
The FSCA again reminds consumers who wish to conduct financial services with an institution or person to check beforehand with the FSCA on either the toll free number (0800 110 443) or on the website www.fsca.co.za as to whether or not such institution or person is authorised to render financial services, and in particular which financial products they are licensed for.