- The FSCA has warned the public about an alarming increase in impersonation scams and unauthorised financial services being offered online and via messaging apps.
- It has taken strong enforcement action against rogue firms like Banxso and Afrimarkets, while also exposing individuals falsely posing as trusted financial brands.
- These developments come as the FSCA rolls out its 2025–2028 Regulation Plan, aimed at reforming market conduct laws and tackling emerging risks like AI and open finance.
South African consumers are being urged to exercise extreme caution when approached with investment offers, especially those that circulate on WhatsApp, Facebook, and other social media platforms.
The Financial Sector Conduct Authority (FSCA) has sounded a serious warning as it confronts a wave of fraud, impersonation, and unauthorised financial services targeting the public.
In one of the most disturbing cases, Portcullis Securities (Pty) Ltd, PCS Holdings (Pty) Ltd, and Mark Kretschmar were caught using the FSP number of Freedom Capital (Pty) Ltd without its consent to solicit funds from unsuspecting investors. The FSCA has confirmed that these entities are not authorised to offer any financial services, and Freedom Capital has denied any affiliation.
The Authority also cautioned the public against individuals posing as employees of EasyEquities, part of Purple Group Ltd. The impersonators used fake social media profiles to promise high returns, then instructed victims to deposit money into personal accounts, often followed by demands for fictitious “withdrawal fees.”
Another scam involved fraudsters impersonating Scope Markets SA (Pty) Ltd and its CEO, Robert J van Eyden, using WhatsApp and forged “Irrevocable Trust Agreements” to sign up fake clients. Scope Markets has confirmed the documents were fraudulent and that neither the CEO nor the company is involved in the scheme.
The FSCA has also flagged the activities of SYW and Mr Hannes Dupper, who allegedly operated an unregistered investment business that took money against unsecured assets. After investigating, the FSCA found no record of licensing and confirmed they are not authorised under the Financial Advisory and Intermediary Services Act.
Afrimarkets and Banxso licences pulled
In more severe cases, the FSCA has withdrawn licences from operators found to pose significant risk to the public. In early July 2025, the FSCA provisionally withdrew the licence of Afrimarkets Capital (Pty) Ltd, citing concerns about aggressive sales techniques, misleading promises of returns, and the use of deepfake advertising. Afrimarkets also reportedly failed to conduct proper risk assessments and caused clients to suffer material losses.
The FSCA found Afrimarkets to be closely linked to Banxso (Pty) Ltd, whose licence has now been permanently withdrawn. After considering submissions from Banxso, the FSCA concluded the firm had misappropriated client funds, misled both clients and regulators, and failed to act in the best interest of customers. Both companies were found to have operated with similar methods, and both failed to meet the fit and proper requirements expected of financial service providers.
These cases mark a shift in tone from the FSCA, one that signals zero tolerance for misconduct, deception, and regulatory evasion in South Africa’s financial markets.
A new era of market conduct oversight
These recent crackdowns are unfolding alongside the launch of the FSCA’s 2025 Regulation Plan, a comprehensive blueprint guiding the Authority’s regulatory direction from 1 April 2025 to 31 March 2028.
At the heart of the Plan is the finalisation and implementation of the Conduct of Financial Institutions Bill, which will replace outdated and fragmented legislation with a single, streamlined framework for regulating financial service providers. The FSCA aims to establish a principles-based market conduct regime that ensures fair outcomes for customers, regardless of the institution they deal with.
The FSCA is also working closely with National Treasury to review the Financial Markets Act, and will introduce reforms to promote transparency, improve efficiency, and build investor confidence across markets.
Looking beyond legislation, the Regulation Plan tackles emerging risks such as artificial intelligence, open finance, and sustainable finance. The FSCA also intends to improve operational resilience and to support the transition of regulatory oversight for pension funds, collective investment schemes, and friendly societies to the Prudential Authority.
The plan reflects not only a response to past failings, but a proactive move toward a future-proof financial system, one built on consumer protection, innovation, and international alignment.
Your role in protecting your finances
The FSCA’s warning is not just aimed at firms; it’s directed at the public. South Africans are being urged to verify the authorisation of anyone offering investment advice or financial services. Individuals or companies must be licensed by the FSCA, and consumers can confirm FSP numbers on the FSCA website or by calling the Authority’s toll-free helpline at 0800 203 722.
Red flags include unrealistic promises, pressure to invest quickly, and instructions to deposit money into personal bank accounts. The FSCA advises consumers to be suspicious of unsolicited offers, especially when they originate from social media or messaging apps.
With the release of the 2025 Regulation Plan and a growing number of enforcement orders, the FSCA is sending a strong message that financial misconduct will not be tolerated, and public protection is now the cornerstone of South Africa’s regulatory future.
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