The Financial Sector Conduct Authority (FSCA) has urged the public to be cautious when conducting financial services business with Weownomy, a platform purporting to offer advisory services.

In a statement, the FSCA said Weownomy was not authorised to render any financial advisory and/or intermediary services in terms of the Financial Advisory and Intermediary Services Act No. 37 of 2002 (FAIS Act).

The FSCA said it received information from a member of the public that had raised material concerns.

“According to their platform (Weownomy.global), Weownomy is a social platform where users are offered the option of buying shares. Shareholders are then promised a portion of money paid by advertisers on the platform,” reads the statement.

The authority said Weownomy was not authorised as a financial services provider in terms of the FAIS Act.

“The FSCA is of the view that it is likely that the entity is conducting financial services business and requires a financial services provider licence from the FSCA, to conduct business in South Africa.

“It is therefore highly likely that they are conducting unregistered business, which is a criminal offence. Members of the public should always check that an entity or individual is registered with the FSCA to provide financial advisory and intermediary services and what category of advice it is that the entity is registered to provide,” it said.

The FSCA said there were instances where persons were registered to provide basic advisory services for a low-risk product and then offered services of a far more complex and risky nature.

The FSCA again warned consumers who wish to conduct financial services with an institution or person to check beforehand with the FSCA on either the toll-free number 0800 110 443 or on the website www.fsca.co.za as to whether or not such institution or person is authorised to render financial services, and in particular which financial products they are licensed for.

Source: South African Government News Agency