The Financial Sector Conduct Authority (FSCA) is conducting an investigation into the online trading platform Regenesis Markets, based in Rosebank, Johannesburg.
Regenesis Markets is an authorised financial services provider with FSP number 49977. On its website the company markets itself as “a provider of online trading products ranging from contracts for difference (CFDs), single stocks future [sic], indices, local and international cash, commodities, and exchange traded funds (ETFs), using innovative trading technology, MT4 Trading Platform and ProTrader Technology. We have offices in South Africa, Nigeria, Tanzania, Mauritius, Botswana, Zimbabwe, and Kenya and Malta.”
In a statement released this week, the FSCA said the complaints emanate from clients who have not received their funds despite submitting withdrawal requests.
Following a preliminary investigation, the FSCA issued a directive under the Financial Sector Regulation Act directing Regenesis Markets to:
- Cease to accept new clients and/or process new client applications;
- Deactivate the function on its website that enables the public to sign up as new clients;
- Disallow any new transactions entered into by existing clients (Regenesis may assist clients to close out any pre-existing open CFD positions);
- Perform an immediate accounting and reconciliation of client funds; and
- Fully inform all its active clients, within three days of receiving the directive, of the current state of affairs of Regenesis Markets, with specific reference to its difficulty to honour withdrawals.
The investigation is ongoing.