BHI Ponzi: FSCA probes financial service providers & others

By Chris Steyn

South Africa’s Financial Sector Conduct Authority (FSCA) has expanded the scope of its investigation into the BHI Trust case to authorised financial services providers that may have advised or assisted their clients to invest in BHI Trust products.

The FSCA has also expanded its investigation to include persons other than Craig Warriner connected to the BHI Trust.

And it is liaising with the criminal prosecuting authorities regarding its investigation.

These developments are confirmed in the FCSA’s latest update on its investigation.

“At this stage, the FSCA wishes to confirm that it has expanded the scope of its investigation, in respect of the financial sectors laws and parties involved. 

“The FSCA also confirms that it is looking into authorised financial services providers that may have advised or assisted their clients to invest in BHI Trust products. 

“The main focus of this part of the investigation is to determine whether these providers acted with due care and diligence and considered suitability and risk when advising their clients. 

“It is also not permissible for financial services providers to recommend financial products to clients that are not issued by licensed entities.” 

The update continues: “The FSCA has also expanded its investigation to include the activities of the BHI Trust and Mr Craig Warriner (Mr Warriner), and other persons connected to the BHI Trust, and is liaising with the criminal prosecuting authorities regarding its investigation.” 

The FSCA stresses that neither the BHI Trust nor Warriner were licenced with the FSCA “in any manner”. 

It issues this warning: “The FSCA reiterates that it warns the public on an ongoing basis about the risks and dangers of conducting financial services business with entities that are not suitably authorised. Conducting unregistered business is a criminal offence. When investors buy financial products and services from entities that are not licensed as financial institutions, they do so at their own risk, and they do not enjoy the protection and risk mitigation measures associated with appropriately licenced and authorised entities.”

And it proves this advice: “The FSCA once again advises members of the public to exercise due diligence and always verify whether an entity or individual is suitably authorised by the FSCA to provide specific financial product or service before making any purchase or investment.” 

Verification can be done through one of the following: 

• 1)  Toll-free number: 0800 110 443
  
• 2)  Online search for authorised financial institution by license category:
  

https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-Entities- Prsons.aspx
3) Online search for a financial institution that is an authorised FSP in terms of the FAIS Act: https://www.fsca.co.za/Fais/Search_FSP.htm 

Read the FSCA statement in full:

Read also:

• BHI Ponzi: Global & Local’s Haldane ‘lawyers up’ – promises a full response is coming
• BHI Ponzi: Investec pulls the plug on Global & Local
• BHI Ponzi: Only R4 785 164.96 in the Trust’s Nedbank Account