Latest news with #FSCA
IOL News
2 days ago
- Business
- IOL News
FSCA warns against platform using deep fake videos of Siya Kolisi for investment
, Springbok captain Siya Kolisi Image: BackpagePix The Financial Sector Conduct Authority (FSCA) warned on Friday that individuals are using a deepfake video involving Siya Kolisi and the logos of amongst others, the FSCA, FirstRand and the South African Reserve Bank (SARB) to solicit investments from the public. Kolisi has made history by becoming the first black captain of the South African rugby team, the Springboks and has shot to fame. The FSCA said the public must be cautious when conducting financial services business with an investment platform purporting to be associated with it, the SARB, First Rand Limited and Standard Bank Limited. In the deepfake video Kolisi is seen promoting investments via a platform, where investors are offered unrealistic returns. Investors are offered returns of between R8 000 and R12 000 per day on an investment of R4 400, and monthly returns up to R160 000 a month. The SARB and FirstRand have distanced itself from the deepfake video and are conducting its own internal investigations regarding the use of its details, in what is clearly a deepfake video. The FSCA also confirms that it is not associated with those behind the deepfake videos. The individuals behind the deepfake video did not respond to FSCA enquiries. To avoid unnecessary risk, the public should refrain from accepting financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Authorised financial services providers must clearly display their authorisation status in their documentation. If this is not present, it is advised to further investigate before making any payments. It is highly recommended that the public verify that an entity or individual is authorised by the FSCA to provide financial products and services, including for giving recommendations about how to invest. One of the following methods may be used to confirm the status and FSP number of a service provider or a person that claims to be an authorised service provider is a toll-free number: 0800 110 443 or online search for authorised financial institution by license category BUSINESS REPORT
News24
3 days ago
- Business
- News24
FSCA sounds alarm as scammer impersonates its ex-enforcement boss in brazen bid to steal R2.7m
The Financial Sector Conduct Authority (FSCA) has warned the public to beware of scammers impersonating representatives of the regulator, after receiving a complaint about a bold attempt to steal close to R3 million. In a statement on Friday, the FSCA said it had received a complaint from an unnamed foreign national claiming that he had received notices purportedly from the regulator and apparently signed by its former divisional executive, Brandon Topham. According to the scammer, the complainant needed to pay up $150 000 (around R2.7 million) for six surety bonds in order for the Reserve Bank to release $260 750 (some R4.6 million) it held for the complainant's benefit. Topham, whose career has also crossed into politics, was formerly the regulator's head of enforcement. He worked and publicly commented on a number of high-profile investigations. However, he left the FSCA four years ago. According to the statement, he also confirmed he had no knowledge of the notices. '[T]he FSCA is not involved with the issuing or processing of surety bonds. It is also not involved in the authorisation of the release of funds held by the South African Reserve Bank,' the regulator said. 'Mr Topham confirmed that he did not sign the notices.' While the FSCA is probing the matter, the scammers are – for the moment – in the wind. 'The FSCA could not contact the impersonators. The FSCA is liaising with the representatives of the complainant,' the regulator said. 'The FSCA is investigating this matter and urges the public to be vigilant when approached with unsolicited offers involving large sums of money, especially when such offers require upfront payments.'
IOL News
3 days ago
- Business
- IOL News
Understanding the COFI Bill: essential insights for financial institutions
Discover the key implications of the Conduct of Financial Institutions Bill (COFI) for South African financial institutions. This article outlines essential preparations and strategic opportunities for compliance and governance in the evolving regulatory landscape. Image: File photo. Once enacted, the much-anticipated Conduct of Financial Institutions Bill (COFI) will introduce a significant shift in the legislative and regulatory landscape of South Africa's financial services sector, according to Webber Wentzel Financial Regulatory Practice Group. The group says the Bill forms a key component of the country's Twin Peaks regulatory reform and will primarily focus on strengthening market conduct regulation across the entire financial services sector. COFI will, amongst others, consolidate and replace various industry-specific conduct laws, such as the Financial Advisory and Intermediary Services Act, 2002; the Collective Investment Schemes Control Act, 2002; the Short-term Insurance Act, 1998; the Long-term Insurance Act, 1998; the Credit Rating Services Act, 2012; the Financial Institutions (Protection of Funds) Act, 2001; and the Friendly Societies Act, 1956, the group says. "It will also effect extensive amendments to the Pension Funds Act, 1956;; the Financial Sector Regulation Act, 2017; the Banks Act, 1990; the Labour Relations Act, 1995; the Insurance Act, 2017; the Income Tax Act, 1962; the Financial Markets Act, 2012; the Medical Schemes Act, 1998; the Transnet Pension Funds Act, 1990; the Co-operative Act, 2005; and the Government Employees Pension Funds Law, Proclamation, 1996. It further scopes within its ambit certain activities under the National Payments Systems Act, 1998, and the National Credit Act, 2005," it says. The group says COFI readiness is essential. "Following two rounds of public commentary, COFI is expected to be introduced in Cabinet towards the end of 2025 and tabled in Parliament either later this year or in the first quarter of 2026. Its promulgation is anticipated in 2026, with a transitional period of approximately three years to follow," it says. The Financial Sector Conduct Authority (FSCA) Commissioner has emphasised that readiness for COFI is an industry-wide responsibility, not solely the FSCA's. Financial institutions must proactively align their business models, governance frameworks, and compliance strategies with COFI's principles and expectations. Early preparation will ensure agility and competitiveness once the new regime takes effect, the group says., Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ According to the group, COFI will introduce a range of practical obligations that institutions should begin planning for now, which include the following: Financial institutions should monitor and participate in the formal consultation processes that may follow once COFI is introduced to Parliament. Financial institutions are advised to begin mapping their current activities to prepare for the activity-based licensing model and to develop compliance frameworks aligned with this approach. Principles from the Retail Distribution Review will also need to be considered to ensure readiness for implementation. Governance structures may need to be revised , or developed from scratch, and institutions must ensure that key persons meet , and continue to meet , the fit and proper requirements. Fair customer treatment practices must be strengthened in line with the Treating Customers Fairly (TCF) principles. Financial resources across the financial institution should also be reviewed to ensure that they remain adequate. Financial institutions must evaluate their operational capabilities to ensure they are ready to meet COFI's demands. Reporting frameworks may need to be updated, while transformation policies and related structures should be developed or enhanced. Automated/technology-driven systems and processes should also be reviewed to confirm that they remain fit for purpose under the new regulatory expectations. The above should be considered in light of the broader range of financial products and services and activities that will be affected by COFI. COFI will apply broadly to all financial institutions as defined in the Financial Sector Regulation Act, 2017 (FSR Act). This includes financial product providers, financial service providers, the holding companies of financial conglomerates, and any person licensed or required to be licensed in terms of a financial sector law, the group says. A financial product provider is any person who, as a business or part of a business, provides a financial product. "Under the FSR Act, 'financial product' will include: participatory interests in collective investment schemes and alternative investment funds; non-retail lending; life and non-life insurance policies; retirement funds and friendly society benefits; deposits under the Banks Act; health service benefits provided by medical schemes; credit under the National Credit Act; warranties, guarantees or other credit support arrangements; and any other facilities or arrangements designated by regulation. "A financial service provider is any person who, as a business or part of a business, provides a financial service. This includes providing financial products, distribution, financial advice, investment management, administration, custodian services, crypto asset custodial services, payment services, debt collection, financial market activities, benchmarks, credit rating services, third-party treasury management, and corporate advisory services," Webber Wentzel Financial Regulatory Practice Group says. Any financial institution providing one or more of these financial products or financial services will be required to comply with COFI. Institutions offering these financial products and financial services will need to be licensed under COFI and meet ongoing obligations, including: ensuring that key persons and representatives satisfy the fit and proper requirements; maintaining sound corporate governance standards; implementing appropriate remuneration and conflict of interest policies; and having a transformation policy in place. Financial institutions must maintain adequate financial resources and operational capabilities at all times and meet all reporting, record-keeping, and audit requirements under COFI. To prepare for the relicensing, financial institutions should map all activities, services, and products against the new requirements to determine the correct licensing approach, the group says. "While the new regulatory framework will require significant preparation, it presents a strategic opportunity for financial institutions to build trust, improve governance, and position themselves for long-term resilience and growth. Proactive planning and early action will be key," the group says. Meanwhile, Old Mutual Personal Finance (OMPF), a provider of financial advice and investment solutions and a wholly owned subsidiary of the Old Mutual Group, has declared its full support for the Bill, describing it as a progressive and much-needed step toward a more ethical, inclusive, and accountable financial sector.
The Citizen
6 days ago
- Business
- The Citizen
Here comes the COFI Bill and this is what it will do for consumers
Consumers will be able to expect the same good treatment from all financial service providers based on the COFI Bill. The COFI Bill is well on its way to ushering in a new era for South Africa's financial services industry rooted in transparency and fairness when financial products are sold and delivered and stronger consumer protection. Lizl Budhram, head of advice at Old Mutual Personal Finance, says Old Mutual fully supports the Conduct of Financial Institutions (COFI) Bill and describes it as a progressive and much-needed step toward a more ethical, inclusive and accountable financial sector and a milestone for the financial services industry. 'Supporting the COFI Bill is ultimately about advocating for our advisers and customers, improving sector governance and building toward a more sustainable financial ecosystem that encourages consistency and clarity in how financial products and services are delivered and regulated.' She points out that as South Africa continues to strengthen its financial regulatory landscape through the Twin Peaks reform process, the COFI Bill stands out as a transformative tool that simplifies and consolidates existing conduct legislation into a single, principle-based, outcomes-driven framework. ALSO READ: SA joins the club that regulates financial markets through 'Twin Peaks' Twin Peaks Model and COFI Bill The Twin Peaks model, introduced in 2018, reshaped South Africa's financial regulatory system by establishing two dedicated regulators: the Prudential Authority that oversees the financial soundness of institutions and the Financial Sector Conduct Authority (FSCA) that supervises how financial institutions treat their customers. Budhram says this dual approach separates prudential oversight from market conduct supervision. She believes that the COFI Bill will benefit consumers as well as financial institutions by creating an environment that promotes transparency, accountability and innovation. 'The COFI Bill is designed to modernise the regulatory environment by shifting away from rigid, fragmented rules towards a unified and coherent system that applies equally across all institutions providing financial services, regardless of their form or sector.' Once it is enacted, the COFI Bill will replace the conduct provisions in various existing laws and eliminate duplication and conflicting regulatory provisions. This will effectively empower the FSCA to oversee market conduct across the board while reinforcing the core principle of treating customers fairly. ALSO READ: Buy now, panic later? Why payment system might be too good to be true Key pillars of COFI Bill According to Budhram, the COFI Bill is underpinned by four key pillars: Activity-based regulation: Similar financial activities will be regulated in the same way, regardless of who provides them. Similar financial activities will be regulated in the same way, regardless of who provides them. Principles-based framework: Regulators will set intentions and outcomes rather than prescribing exact steps, offering institutions greater flexibility. Regulators will set intentions and outcomes rather than prescribing exact steps, offering institutions greater flexibility. Outcomes-focused supervision: The emphasis is on delivering fair customer outcomes, not just ticking compliance boxes. The emphasis is on delivering fair customer outcomes, not just ticking compliance boxes. Risk-based and proportionate regulation: Institutions will be supervised based on the risk they pose to customers and the sector, ensuring fairness and practicality. Budhram points out that the COFI Bill reflects a deep understanding of consumer protection as well as market realities. 'The FSCA has recognised the strain that constant regulatory changes place on institutions. With the COFI Bill, we get a single, flexible framework that aligns with international best practice and responds to modern risks, from cybercrime to AI-enabled services.' ALSO READ: Most South Africans not happy with financial institutions' handling of complaints COFI Bill catalyst for consumer trust and innovation She says Old Mutual Personal Finance views the COFI Bill as a catalyst for: Enhanced consumer trust through transparent practices and clearer accountability. Innovation enablement, particularly in areas like open finance, fintech and artificial intelligence. Improved adviser outcomes, as the framework allows advisers to focus on what matters most: client needs and aspirations, rather than compliance complexity. Streamlined regulatory transition, allowing institutions to evolve without operational disruption. 'Fittingly, this COFI Bill enables financial services providers to build lasting relationships with customers based on outcomes, not just products. It shifts the mindset from sales to service and from regulation to responsibility'. ALSO READ: Major banks called to parliament about credit lending practices Time to get ready for COFI Bill Old Mutual urges all financial industry stakeholders, particularly advisers, to take an active role in preparing for the COFI Bill's rollout by staying informed on the latest draft regulations, understanding the intent behind the legislation to ensure meaningful implementation and engaging early to enable smooth operational adjustments once it becomes law. 'The COFI Bill marks a regulatory turning point, one that promises a more ethical, competitive and customer-focused financial services sector. It lays the groundwork for long-term trust between providers and customers, while positioning the industry to embrace technology and innovation responsibly,' Budhram says. 'South Africa's regulatory framework has reached a point of maturity. It is time to consolidate, simplify and lead with purpose. The COFI Bill gives us the clarity, cohesion and confidence to do just that.'
IOL News
31-07-2025
- Business
- IOL News
Navigating online investment platforms
Explore the growing risks associated with online investment platforms and discover essential measures that both financial service providers and retail customers can take to safeguard their investments. With the growing popularity of online investment platforms, spurred by advancements in digital financial services and the rise of crypto assets, the risk of exploitation of consumers and financial services providers (FSPs) has increased. A recent case in point is Banxso, a Cape Town-based online trading group that, until recently, operated an online investment platform allowing consumers to purchase and sell financial products. On 4 July 2025, the Financial Sector Conduct Authority (FSCA) withdrew Banxso's FSP license, following allegations of non-compliance with certain financial sector laws. The FSCA's investigation was prompted by claims that customers were misled into investing via deepfake videos and social media advertisements featuring billionaire celebrities such as Elon Musk and Rupert Murdoch, purportedly endorsing Banxso. These customers were directed to register via Immediate Matrix on Banxo's platform, a move Banxso claims occurred without its knowledge as a result of a 'malicious attack'. Customers were then contacted by alleged Banxso agents promising substantial returns. While some initially earned profits, many subsequently suffered significant losses.
