The Financial Sector Conduct Authority (FSCA) is a unique independent institution established to ensure a fair and stable financial market in which consumers are informed and protected - and where those who jeopardise their economic well-being are held accountable.
Furthermore, the FSCA enhances and supports the integrity of the financial system.
The FSCA has warned the public about an entity that operates under the name Miway Express Credit Solutions.
This comes after MiWay Insurance Limited (FSP 33970), a South African insurance company and licensed financial services provider, reported Miway Express Credit Solutions' fraudulent activities to the FSCA.
The entity has misled the public by offering personal, business, and credit repair loans and insurance products such as funeral and accident plans.
According to the FSCA, Miway Express Credit Solutions misrepresents its affiliation with legitimate financial institutions and falsely claims to be a registered and authorised financial services provider.
Miway Express Credit Solutions falsely claims that its insurance products are underwritten by Guardrisk Life Limited (FSP 76) and Guardrisk Insurance Company Limited (FSP 75).
Guardrisk Life Limited and Guardrisk Insurance Company Limited have confirmed that they are not associated with Miway Express Credit Solutions.
The entity claims to be registered with the National Credit Regulator (NCR) under registration number NCRCP 9170.
However, the NCR has confirmed that the registration number belongs to Easy Cash Loans (Pty) Ltd, a Tzaneen-based company.
Miway Express Credit Solutions is not registered with the FSCA as an authorised financial services provider.
MiWay Insurance Limited has stated that it has no affiliation with MiWay Express Credit Solutions, despite its attempts to create the false impression of a connection to them.
Sadly, many consumers needing a loan won’t look any further than the name MiWay—because that is a trusted brand that people in our community have been hearing about and whose products they have been using for many years.
The FSCA has advised the public not to conduct any business with Miway Express Credit Solutions, as it not an authorised provider of financial services or products and has warned that engaging with this entity may result in financial loss.
Meanwhile the Financial Sector Conduct Authority (FSCA) has also provisionally withdrawn the financial services provider licence of trading platform Banxso after it made unrealistic returns in marketing its products to clients.
This provisional licence withdrawal came after the Financial Intelligence Centre (FIC) instructed Standard Bank, Nedbank and Capitec to freeze the company’s bank accounts.
Banxso, based in Cape Town, has made a name for itself through it’s sponsorships of high-profile sports teams and athletes, including Bafana Bafana and UFC champion Dricus du Plessis.
The company was also sanctioned for allegedly using deepfakes in its advertising campaigns, which promoted fraudulent investment opportunities.
These ads falsely promised returns of up to R300 000 per month on a one-time investment of R4 700, and advertised fake endorsements from billionaires like Elon Musk and Johann Rupert.
Deepfakes involve manipulating images, video, and audio using artificial intelligence tools.
They don’t require cutting-edge technical know-how.
Software like FaceSwap and ZaoApp, which can be downloaded for free, means that anybody can create deepfakes.
Recent reports suggest that deepfakes are on the rise in South Africa and that South Africans struggle to spot them.
This spurs many to click on videos that they believe are supported and promoted by influential people whom they recognise. Ultimately, this can lead to the loss of their money.
The FSCA also expressed concern about Banxso’s “aggressive and pressurised sales techniques” used by Banxso agents when selling financial products to customers.
These agents promised unrealistic returns and failed to conduct the required risk and need analysis before selling the products to clients.
Despite the Financial Sector Conduct Authority (FSCA) provisionally suspending Banxso’s licence to operate a derivatives trading platform in South Africa on 16 October 2024, the company continues to conduct business as usual.
The FSCA’s website contains very useful information, including a platform which allows the public to verify the credentials of financial services providers.
Website
https://www.fsca.co.za
library@fsca.co.za
Address
Riverwalk Office Park
Block B, 41 Matroosberg Road,
Ashlea Gardens
Pretoria, 0081
Phone