Heystek warns many BHI-like schemes could still “blow up”

By Chris Steyn

The South African investment public are being inundated with offers from unregulated and unregistered schemes that are quite likely to implode.

That is the latest warning from Magnus Heystek of Brenthurst Wealth Management in the wake of the continuing fall-out from the BHI Ponzi scandal that has lost investors billions.

“Currently there are many unregulated and unregistered schemes being flogged to the investment public, all with the potential to blow up spectacularly,” he tells BizNews.

“The most important ingredient in the investment advisory business is reputation. One bad investment recommendation can destroy a business in an instant.”

In one of the latest developments, Global and Local Investment Advisors announced the transfer of its client portfolio to another investment firm.

Global & Local has been under fire since the collapse of the BHI Trust turned the spotlight on its founder Michael Haldane for punting the unregulated trust.

Investec was quick to cut ties with Global & Local, and on 24 November Haldane and MD Mauro Forlin declared the transfer of the company’s client portfolio to GCI Wealth. 

Announcing the move, they stated: “This strategic move aims to uphold the superior financial advisory services our clients deserve amid recent industry upheavals.’

Haldane added: “Global & Local has always been synonymous with outstanding financial guidance. Facing recent challenges, we have actively sought to secure our clients’ best interests. Aligning with GCI Wealth, known for their exceptional client service, ensures our clients will receive continued, high-quality financial care.

“This transition underlines our dedication to our clients’ financial security and our confidence in GCI Wealth’s professionalism. We trust GCI Wealth to uphold the dedication and integrity our clients expect.” 

In a letter to a client, GCI Wealth CEO Alex Cook, wrote:  “As you may be aware, GCI Wealth has recently agreed to take on the client portfolio of Global and Local Investment Advisors, including your account, effective from 1 December 2023.

“We understand that recent challenges faced by Global and Local Investment Advisors may have raised concerns. Rest assured, GCI Wealth has undertaken thorough due diligence to ensure a seamless and transparent transition. Our commitment to upholding the highest ethical standards aligns with our values and your expectations.

“In the coming weeks, we will be engaging with providers and will reach out to you to transfer your mandate to GCI Wealth. A GCI Wealth Manager will also schedule a meeting and will guide you through the onboarding process, answer any questions you may have, and ensure a seamless transition.”

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