Investment firm ordered to repay client capital
The ombud for Financial Services Providers, Naresh Tulsie, has ordered an investment firm, Silver Seed Capital of Bellville, Western Cape, and its key individual, Sandro Veloza, to repay a client, Mr MB, the R10 000 he invested in the company’s FixedGRO investment option in 2014.
According to the ombud’s determination, Mr MB was promised a 30% return on his investment over a six-month period.
He neither received the return due to him nor, at the end of the six months, his capital back. There was no response from Veloza to enquiries initially by Mr MB and subsequently by the ombud’s office.
Tulsie ruled that Silver Seed Capital and Veloza had not made Mr MB aware of the risks of the investment and as such had contravened the Financial Advisory and Intermediary Services Act.
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