FSCA Flags Greyshore Investments: Public Cautioned on Unauthorized Forex Trading

The Financial Sector Conduct Authority (FSCA)
  • FSCA Warning: The Financial Sector Conduct Authority (FSCA) has issued a public warning against Greyshore Investments (Pty) Ltd and Ashley Mmachewe Mphaka. The warning advises the public to exercise caution when dealing with these entities in any financial services-related business.
  • Unauthorized Activities: The FSCA has received information suggesting that Greyshore and Mr. Mphaka might be conducting unauthorized financial services business. This includes advising clients to open forex trading accounts, which Greyshore also offered to manage on behalf of its clients, potentially breaching certain financial sector laws.
  • Verification of Financial Service Providers: The FSCA strongly advises the public to always verify the authorization of an entity or individual before purchasing or investing in any financial product or service. This can be done through the FSCA’s toll-free number or by conducting an online search for authorized financial institutions on the FSCA’s official website.

In a recent press release, the Financial Sector Conduct Authority (FSCA) has issued a public warning against Greyshore Investments (Pty) Ltd and its associate, Mr. Ashley Mmachewe Mphaka. The FSCA urges the public to exercise caution when engaging in any financial services-related business with the aforementioned entities.

The warning comes after the FSCA received information suggesting that Greyshore and Mr. Mphaka might be conducting unauthorized financial services business and potentially breaching certain financial sector laws. The alleged violations are related to advising clients to open forex trading accounts, which Greyshore also offered to manage on behalf of its clients.

Mr. Mphaka has confirmed to the FSCA that he advised clients to register trading accounts with brokers. He further admitted to requesting clients to provide him with their account login details, with the intention of linking client’s trading accounts to his own. This setup would allow the transactions in the client’s trading accounts to mirror the transactions that Mr. Mphaka carried out using his own trading account.

However, it’s important to note that neither Greyshore nor Mr. Mphaka are authorized to furnish financial advice or render intermediary services as per the Financial Advisory and Intermediary Services Act 37, 2002. This revelation raises serious concerns about the legality and safety of their operations.

The FSCA strongly advises the public to always verify the authorization of an entity or individual before purchasing or investing in any financial product or service. This can be done through the FSCA’s toll-free number (0800 110 443) or by conducting an online search for authorized financial institutions by license category on the FSCA’s official website.

This incident serves as a stark reminder of the importance of due diligence when dealing with financial institutions and individuals. It underscores the need for consumers to be vigilant and proactive in verifying the legitimacy of financial service providers before making any commitments.

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