BizNis Africa

SA Financial Services Board warns against fraudulent service providers

South Africa’s Financial Services Board (FSB) has warned that four institutions offering services to the public were not authorised.

In a statement, the FSB said people should take caution when dealing with MD Fund, which claimed to participate in forex trading, which purported to deal in binary options, DMD Capital trading as Profit Trading and Capital Loans.

It said a Facebook post made during 2016 said MD Funds offered daily returns of 0.75 percent to 1.5 percent.

But the company was not an authorised financial services provider despite telling potential clients it was registered under all the laws of South Africa.

The FSB said a South African citizen had invested in binary options with but could not get his funds back.

According to the entity, it is located in Estonia and Belize. It is however not authorised in South Africa.

In a similar case, Profit Trading and Ntokozo Ndlovu were conducting an unregistered business and providing advisory and intermediary services without the necessary authorisation. Profit Trading’s licence was withdrawn on 02 September 2016.