As usual we’ve combined the November and December Legislative Updates to give you a bit more to read, but more time to get everything finished for the year. It’s time for that well-deserved break you’ve been promising yourself!
If we’ve learned one thing this year, it’s that no-one really knows what “six – seven!” means…
Enjoy the holidays and travel safely.
THE FINANCIAL SECTOR CONDUCT AUTHORITY (FSCA)
Financial sector levies – confirmation and increase for 2025/26
The National Treasury has published the amended Schedules to the Financial Sector and Deposit Insurance Levies Act, 2022, confirming that the levies for the 2025/26 levy year have now been formally approved.
The confirmed levy amounts reflect an overall increase of 4.4% compared with the previous year.
No further changes are anticipated, and the finalised schedules will be used by the FSCA to issue levy invoices over the next few weeks (Merry Christmas! – Ed.).
Warnings
A very long list of warnings for this update! Scammers are known to increase their activities at this time of year, and they are nothing if not consistent.
A person or persons calling themselves Michael Lewis is impersonating the FSCA, claiming they can recover funds from an unauthorised online trading platform.
Parties are impersonating Verbo Capital (Pty) Ltd on the following websites: www.verbocapitalmarket.com and www.verbo-fx.com, promising unrealistic returns.
Lethabo Mashiane and Vhuhwavho Lehaiva are soliciting funds from members of the public for investment purposes, as well as providing signals and trading services to members of the public, but they are not authorised financial services providers (FSPs) or representatives.
El Chapo is soliciting R1,000 investments from members the public, claiming to generate returns using a trading robot, and later requesting additional payments to release those returns. El Chapo is not authorised by the FSCA, and this practice does not comply with legitimate financial services regulations.
Barclays Academy is soliciting funds from members of the public for investment purposes, while promising unrealistic returns. Members are recruited through Facebook. Barclays Academy is not authorised under any financial sector legislation.
Bennett Nkomo is impersonating the FSCA (which he sometimes refers to as the “Tactical Financial Authority”) and informed a member of the public that a payment would be made to her after payment of levies into an account not under the control of the FSCA.
Administrators of Telegram groups are falsely claiming to be associated with the authorised FSP Quantum Wealth Management (Pty) Ltd as well as its director, Alicia De Klerk, and are promising unrealistic returns within 48 hours.
Another group (or the same? – Ed.) on Telegram which is impersonating Sterling Private Wealth (Pty) Ltd and its director, Graydon Morris, is offering unrealistic returns from Bitcoin investments.
Individuals using WhatsApp, Facebook, and fake websites are using the name, logo, and FSP of Capitec Bank to solicit investments from members of the public.
Neo Nkoko is soliciting funds from members of the public for investment purposes in forex trading, but he is not registered as a representative or FSP. Once funds are deposited into Nkoko’s bank account, he stops communicating with investors.
SPO Trading is providing financial services to members of the public without being authorised, and is claiming to be a juristic representative of FiveWest OTC Desk (Pty) Ltd (FSP 51619). SPO Trading published marketing material reflecting the name of FiveWest and FSP number 56419. FiveWest confirmed that it is not associated with SPO Trading and that FSP number 56419 does not exist.
Duke Global Funding Limited is impersonating the FSCA and its Commissioner, Unathi Kamlana, and is soliciting payments to resolve exchange-controlled transactions.
Nasper Capital and persons claiming to be associated with Trade Nation Financial (Pty) Ltd are promoting investments in Bitcoin. Trade Nation Financial confirmed that it is not associated with Nasper Capital.
Jacobus Hendrik Luttig and Vixheim Trading (Pty) Ltd are soliciting funds from members of the public for investment purposes and are promising unrealistic returns. Neither Luttig nor Vixheim Trading is authorised under any financial sector legislation.
Rhynier Burger of Kovacs Investments 383 CC is being impersonated on Telegram by persons who are promoting cryptocurrency investments and trading signals.
Forex Major is soliciting funds from members of the public for its copy trading services. Copy trading is a method used in financial markets where individuals automatically replicate the trading activity of other selected investors. The FSCA confirms that Forex Major is not authorised under any financial sector legislation.
Daniel Karabo Tshabalala is soliciting funds from members of the public for investment purposes. Tshabalala is using Instagram to provide signals and trading services, but he is not authorised by the FSCA to provide financial services.
Joash Naidoo is soliciting funds from members of the public for investment purposes by offering copy trading services and trading signals in forex. It is claimed that an investment of R1,000 may yield a return of R16,000 within 24 hours. Naidoo claims on his social media account to be associated with TD Markets (Pty) Ltd; however, he is not authorised under any financial sector legislation.
Fast Track Global Trade is soliciting funds from members of the public through its website: https://fasttrackglobaltrade.com. The platform promotes various investment plans and promises unrealistic daily returns of up to 98%. To process withdrawals, it charges a 15% service usage fee on the investor’s accumulated profits. Any offer of excessively high returns should be treated with suspicion, as it is often a sign of fraudulent activity. Fast Track Global Trade is not authorised under any financial sector legislation.
Impersonators are using Telegram to impersonate Cuthman Capital (Pty) Ltd and its Chief Operating Officer, Thandi Wille.
Another group is using Telegram to impersonate 27Four Investment Managers (Pty) Ltd and its Managing Director, Fatima Vawda.
Quantum Wins is soliciting funds through an online trading platform claiming to trade in cryptocurrencies and promising guaranteed profits. After depositing funds into cryptocurrency wallets, investors are unable to withdraw or access any profits.
David Sean is using Capitec’s FSP number to solicit investments from members of the public. The FSP number appears in communications with individuals in Sean’s WhatsApp group. Capitec has confirmed that it is not associated with Sean.
Alexander Forbes Financial Planning Consultants (Pty) Ltd and its Chief Executive Officer, Dawie de Villiers, are being impersonated on Telegram.
Individuals are impersonating Exness ZA (Pty) Ltd on Telegram and WhatsApp.
Altvest Capital Solutions and its Chief Executive Officer, Warren Wheatley, are being impersonated on Telegram.
A group is using WhatsApp groups, mobile applications, and bank accounts that are falsely claiming to be associated with Avior Capital Markets (Pty) Ltd.
Rick Steiner is falsely claiming to be an employee of the FSCA. The individual is contacting people claiming that their names appear on a list of scam victims and that funds are allegedly due to them.
The FSCA has launched an investigation into Imermarket (Pty) Ltd, its key individual Bongani Goodenough Mngadi, and director/shareholder Marios Kyriakou, following client complaints of improper trading advice, pressure to deposit additional funds, and problems withdrawing investments.
Prescient Investment Management (Pty) Ltd and its representative Odwa Sihlobo are being impersonated on WhatsApp.
A WhatsApp group under the name NSBG J523 Investors is soliciting funds from members of the public by promising access to a mobile application that allegedly enables investment through the platform. NSBG typically request payments of around R1,000. Once a payment is made, a link to download the NSBG mobile application is shared. However, the link often proves inaccessible, and members receive no further communication or support.
Thashen Pillay and Forex Ghost Trader are soliciting funds from members of the public for investment purposes via Telegram. Pillay reportedly assists investors in creating trading accounts and links them to his own account, which allegedly replicates his trades. Promised returns range from 10% to 15% per month, which are unrealistic. Pillay and Forex Ghost are not authorised to provide financial services.
Visio Fund Management (Pty) Ltd and its former employee Tassin Meyer are being impersonated by the administrators of a Telegram group.
Sphesihle Cele, also operating under the alias “Nhlakanipho Zungu”, is using the FSP number of TSB Securities (Pty) Ltd and the name of Thebe Investment Corporation (Pty) Ltd to promote long-term investment products. TSB Securities and Thebe Investment have confirmed that they are not associated with Cele.
AI JSE Pro is using the FSP number of JSE Private Placement (Pty) Ltd to promote investments, but is not associated with the company nor is it a licensed FSP in its own right.
Eventually, the FSCA started listing the new cases:
Risto Ketola is being falsely presented as a host of an FSCA-endorsed investment competition through a WhatsApp group.
Musa Mseleku is being impersonated in schemes promising double investment returns within 24 hours.
Anthea Gardner, the CEO of Carttesian Capital, is having her name used on Telegram to promote illegitimate investment plans.
Brokstock SA (Pty) Ltd is falsely associated with a scheme operating via WhatsApp offering “exclusive share packages”.
Cloudtrade247 is operating without FSCA authorisation while soliciting funds and additional payments under the guise of investment returns.
Renzo Marco Torrente and Omne Digital Wealth are offering unauthorised crypto asset investments via Instagram.
FSCA issues heavy penalties and 20-year debarments for unauthorised forex activities
The FSCA has taken significant regulatory action against Chantelle Kleynhans and Pieter Willem van der Walt following an investigation into their unauthorised forex-related activities.
The FSCA found that the pair solicited deposits from members the public on the promise of trading forex on clients’ behalf, contravening section 7(1) of the FAIS Act by providing financial services without the required authorisation.
As a result, the FSCA imposed administrative penalties of R1.55 million on Kleynhans and R550,000 on van der Walt, and debarred both individuals for 20 years. The matter will be referred to the South African Police Service for further investigation.
Withdrawal of licences
The FSCA has officially withdrawn the licences of Medbond Markets (Pty) Ltd and Medbond Insurance Brokers (Pty) Ltd following a detailed investigation.
The Authority found that Medbond Insurance Brokers provided inappropriate advice, directing clients to invest in non-existent Lombard International products, while Medbond Markets acted unlawfully as a discretionary manager, channelled client funds through unauthorised entities, and misled clients regarding their investments.
A flow-of-funds analysis confirmed that client monies were misappropriated, resulting in financial losses. Both companies were found to have materially contravened key provisions of the FAIS Act, the General Code of Conduct, and the Financial Institutions (Protection of Funds) Act.
OMNI-Risk Return
Should you not have been able to obtain a seat at the OMNI-Risk Return workshops, the FSCA has released copies of the presentations from the sessions.
The presentations provide a better idea as to the intentions of the FSCA in creating the report.
FINANCIAL INTELLIGENCE CENTRE
Discovery Bank sanctioned for Financial Intelligence Centre Act (FICA) non-compliance
The Prudential Authority has imposed administrative sanctions on Discovery Bank following a 2021 inspection under FICA.
The sanctions include four cautions and a financial penalty of R3 million, of which R1 million is conditionally suspended for 36 months from 9 July 2025.
The findings highlighted several areas of non-compliance:
- Delayed suspicious transaction reporting: 24 reports were not submitted to the Financial Intelligence Centre within the required timeframes.
- Inadequate staff training: Significant gaps in both initial and refresher anti-money laundering training across staff and management.
- Failure to address transaction monitoring alerts: More than 2,200 system alerts were not attended to within the mandated 48-hour period under Directive 5/2019.
- Deficiencies in the Risk Management and Compliance Programme (RMCP): Lack of documented procedures for RMCP reviews and unclear definitions relating to reporting thresholds.
The PA noted that Discovery Bank has since cooperated to implement remedial actions to rectify these shortcomings.
Sanctions imposed on two authorised forex dealers
The South African Reserve Bank has imposed administrative sanctions on two authorised dealers in foreign exchange with limited authority (ADLAs) for non-compliance with FICA.
Home Remitt (Pty) Ltd was sanctioned following an inspection that revealed weaknesses in its control measures, particularly in conducting ongoing due diligence and transaction monitoring. The company was fined R100,000 for failing to comply with its customer due diligence obligations.
Access Forex (Pty) Ltd faced a more extensive set of penalties totalling R162,500. The sanctions were imposed due to deficiencies in its RMCP, failure to verify and identify certain customers, and inadequate staff training.
The regulator continues to emphasise the importance of compliance in safeguarding the integrity of South Africa’s financial system.
FSCA imposes R1.7 million fine on Harith General Partners
The FSCA has fined Harith General Partners (Pty) Ltd R1.7 million for multiple contraventions of the FIC Act.
Harith, a licensed FSP, was found (like so many others) to have deficiencies in its RMCP, customer due diligence, targeted financial sanctions screening, and employee screening processes.
The FSCA’s inspection revealed that Harith failed to verify client and beneficial owner identities adequately, did not screen clients or employees against United Nations sanctions lists, and lacked evidence of ongoing staff integrity checks.
Of the total penalty, R500,000 is conditionally suspended for two years while Harith implements remedial measures.
PRUDENTIAL AUTHORITY (PA)
Artificial Intelligence (AI) in the South African financial sector
A new joint report by the FSCA and the PA offers a comprehensive view of AI being adopted across South Africa’s financial sector.
AI usage is accelerating across the sector, with banks leading adoption at more than 50%, followed closely by payments institutions. Most institutions plan modest investments under R1 million, although more than half of banks intend to invest more than R20 million, reflecting their digital transformation priorities.
Traditional AI is most active in operations and IT, while generative AI (GenAI) is gaining traction in sales and marketing. Leading use cases include fraud detection (traditional AI); product and service promotion (GenAI); and credit scoring, underwriting, personalised banking, robo-advice, algorithmic trading, and AML/CFT monitoring.
Institutions report four major benefits: enhanced data and analytical insights; increased productivity and operational efficiency; hyper-personalised customer engagement; and improved risk management and compliance capabilities.
Despite the promise of AI, organisations highlight several challenges:
- Data privacy and protection remain the most significant risks and the biggest regulatory constraint;
- Cybersecurity vulnerabilities are heightened as institutions scale data-intensive models;
- Model risk, including bias, hallucinations, poor explainability, and data-quality dependence, poses prudential concerns; and
- Talent shortages and difficulties achieving transparency.
The report emphasises the importance of robust data governance, model validation, and ongoing monitoring, as well as the implementation of explainability tools such as SHAP and LIME. It also notes the need for clear disclosure when AI is used in consumer-impacting decisions, development of ethical and responsible AI standards to mitigate bias and consumer harm, and that parties must ensure alignment with the Protection of Personal Information Act in their development.
The report notes the potential for macroprudential risks, including systemic vulnerabilities from concentrated third-party AI providers, herding behaviour, and pro-cyclicality.
NATIONAL TREASURY (NT)
Appointment of new Pension Funds Adjudicator
The Minister of Finance has appointed Lebogang Paul Mogashoa as the new Pension Funds Adjudicator with effect from 8 December 2025 for a three-year term.
Mr Mogashoa has more than 17 years of experience in pension fund law, governance, and administration, having previously served as Deputy Principal Executive Officer and Company Secretary of the Eskom Pension and Provident Fund. His qualifications include an LLB, LLM in Mercantile Law, and a Master of Management in Governance and Management, alongside an Executive Development Programme from Stellenbosch University.
The Ministry extended its gratitude to outgoing Adjudicator Muvhango Antoinette Lukhaimane for her exceptional leadership and service.
A-PROOFED
Congratulations. You’ve made it to the end of the Legislative Update. By now, you might be feeling a bit overwhelmed by the many, many, many warnings and alerts in this update, and honestly, who could blame you? Maybe you enjoy my ramblings about words, maybe you scrolled too far by mistake, or maybe your curiosity got the better of you. Any of those reasons work for me.
It’s December. Most of South Africa is already winding down. Out-of-office messages are being drafted, office closure notices are being sent out, Season’s Greetings emails are flying around, and the working year is technically over. Your desk may be cluttered, your to-do list is probably feeling longer than you’d like, and your brain is likely off somewhere dreaming of your Plett holiday.
And yet, here you are, reading this. That’s exactly why these articles exist.
So why should you bother reading these articles at the end of Bryan’s Legislative Update? Here’s my take. I keep them short, practical, and aimed at helping you make your documents easier to read, your language sharper, and your life a little less stressful. My articles focus on the small details that can quietly cause big headaches, such as misplaced commas, confusing sentences, or ambiguous phrasing. I try to make them a bit entertaining too, because compliance writing doesn’t have to be soul-sucking.
You might be wondering whether these snippets will genuinely help. Fair enough. I don’t expect you to think like I do. You may feel perfectly at ease with your documents, ready to close the book on the year. Or you might have a nagging feeling that something’s a little off. Either way, my articles are there when you need them: clear, practical, and put together by someone who’s been in the trenches long enough to know the traps.
Even if you don’t read them every month, it’s useful to know they’re available. Visit the OCS website whenever you’ve got a gap. Some will save you time, some might make you smile, and others will help you spot tiny details that actually matter more than you realise.
I’m going to be bold and suggest that you get in touch with me in January 2026, before the year really kicks off and your to-do list becomes overwhelming. I’d love to help you make sure that your documents are clear, accurate, and ready for Bryan’s compliance visits.
So thank you for making it to the end of the Legislative Update. Thanks for tolerating my obsession with commas, tricky wording, and the occasional silly observation. Whether you read my articles now or later, I hope they leave you with something useful, a small laugh, and a reminder that even the dullest topics can be interesting, when you know where to look.
Here’s to wrapping up 2025 without too many loose ends and starting 2026 confidently.
Kim Hatchuel
083 657 3377 | kim@a-proofed.co.za
www.a-proofed.co.za
