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TimesLIVE
2 hours ago
- Business
- TimesLIVE
FAIS ombud upholds complaint against Luvuyo Burial and Consulting
The office of the ombud for financial services providers has issued a determination in favour of Pumelele Mantingani after financial services provider Luvuyo Burial and Consulting failed to honour a funeral policy claim. Luvuyo Burial's failure to honour the claim has also resulted in its licence as a financial services provider being suspended by the Financial Sector Conduct Authority (FSCA). Mantingani, who took out a funeral policy with the company in September 2020, lodged a complaint with the ombud's office on October 28 last year after Luvuyo Burial and Consulting failed to honour a valid claim after the death of her uncle, Mbuyeni Katshi, on July 17 2024. Mantingani submitted her claim on July 27 2024. Luvuyo Burial and Consulting, based in Khayelitsha, Cape Town, acknowledged the claim and committed to payment, but only partially honoured the obligation, paying R5,000 of the R10,000 due. Despite further assurances, the balance remains unpaid. Numerous attempts were made by the ombud to resolve the matter amicably. Though Luvuto Burial undertook on more than one occasion to settle the outstanding balance, it failed to do so. During the investigation, it also came to light that Luvuyo Burial was operating without an underwriter, raising serious concerns regarding its compliance with regulatory requirements. In assessing the evidence, the office found that the policy was valid and that the deceased was listed as an insured life. However, Luvuyo failed to act in accordance with the policyholder protection rules, which require that: 'An insurer must, within two business days after all required documents in respect of a claim under a microinsurance policy or a funeral policy have been received, assess and make a decision whether the claim submitted is valid, and authorise payment of the claim, repudiate the claim or dispute the claim and notify the claimant of the dispute.' The ombud said the company's failure to process the claim appropriately reflected noncompliance with treating customers fairly outcome 6, which states that 'customers do not face unreasonable post-sale barriers when they want to change a product, switch providers, submit a claim or make a complaint'. As a result, the ombud upheld the complaint and ordered that Luvuyo Burial and Consulting pay the complainant the outstanding balance of R5,000 with interest at a rate of 11.25% per annum from the date of the determination until the date of final payment. 'Given the respondent's failure to comply with regulatory requirements, a copy of this determination was referred to the FSCA for its attention and possible enforcement action. 'As a result, the respondent's licence as a financial services provider was suspended by the FSCA on April 14,' the ombud said.
IOL News
8 hours ago
- Business
- IOL News
Financial institutions urged to vet CPD providers amid credential concerns
The Financial Sector Conduct Authority (FSCA) has issued a nationwide warning to financial institutions Image: File The Financial Sector Conduct Authority (FSCA) has issued a nationwide warning to financial institutions, urging them to carefully verify the credentials of Continuous Professional Development (CPD) providers before engaging their services. This warning comes after the financial sector watchdog "became aware that an entity known as LearnOn (Pty) Ltd (Learn On) has been offering continuous professional development (CPD) services to Financial Services Providers (FSP) without the necessary authorisation". "The services offered include the provision of assistance to FSPs in meeting their CPD competency requirements as set out in the Determination of Fit and Proper Requirements for Financial Services Providers, 2017 (Board Notice 194 of 2017) issued under the Financial Advisory and Intermediary Services Act, No. 37 of 2002," FSCA said. CPD is a required rule for financial services providers (FSPs). It helps make sure that key staff and representatives keep their knowledge and skills up to date so they can do their jobs well. Meeting the minimum CPD requirements is essential to stay compliant with the law. "It appears that LearnOn has issued CPD certificates bearing the logo of the Financial Planning Institute of South Africa (FPI) without authorisation and has used FPI reference numbers that are either invalid or linked to other approved CPD providers. Attempts to reach out to Learn On regarding these concerns via email and telephone have been unsuccessful," the financial sector watchdog said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The financial watchdog added that it was not commenting on LearnOn's business practices or the quality of its training programmes. "However, the FSCA deemed it important to bring this matter to the attention of financial institutions and urge them to verify the accreditation of CPD providers purporting to assist with the fulfilment of competency requirements under the FAIS Act with the relevant professional bodies before entering into any agreements in this regard". Failure to verify CPD providers and programmes may result in financial institutions not meeting their CPD. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
11 hours ago
- Business
- IOL News
Crypto traders, pay attention: legal changes are coming
South Africa's exchange control rules are laws that decide how money can move in and out of the country. They affect how much forex you can buy, how you invest overseas, and how businesses move funds across borders, says Davron Chanderdeo. A RECENT High Court ruling just confirmed something many of us in the crypto world have known for a while. South Africa's laws around money, especially when it comes to crypto, are completely outdated. Judge Mandlenkosi Motha ruled that the country's exchange control regulations, which were written way back in 1961, don't apply to cryptocurrencies like Bitcoin. That's a big deal, because up until now, traders and investors have been operating in a confusing space, unsure what the rules really are. So, what does this mean if you're trading crypto on Luno, VALR, or Binance? Whether you're an investor, casual buyer or someone who trades daily, here's how this decision affects you and what you should do next. Why this ruling matters South Africa's exchange control rules are laws that decide how money can move in and out of the country. They affect how much forex you can buy, how you invest overseas, and how businesses move funds across borders. Until now, there's been no clear rule about where crypto fits. Is it like rand? Is it a foreign investment? Or is it something totally new? Someone can transfer Bitcoin from Cape Town to a family member in Hong Kong in a matter of minutes and that transaction, under current law, isn't clearly defined as foreign or local. The court said: crypto is not covered by the old rules. It's time for new laws made just for digital currencies. So what changes for traders or the everyday South African? Let's break it down with a few real-life examples. You're trading from your couch: You buy Bitcoin on Luno, then move it to Binance for better trading options. Under the old rules, it was unclear whether that was considered 'sending money offshore'. Now? The court says crypto isn't covered, so you're technically not breaking exchange control laws. But this may change once new rules come in. You work for a financial firm or are an avid investor: Let's say your firm wants to launch a crypto ETF or offer Bitcoin as one of the assets in a pension fund. Right now, that's risky, because crypto isn't clearly identified as an onshore or offshore asset. Furthermore, Regulation 28 of the Pension Funds Act allows limited exposure to crypto assets (up to 10%), but asset managers remain cautious due to FSCA guidance and ongoing market volatility. This ruling could pave the way for investment houses to get involved which means more opportunities and better products for everyday investors. The bigger picture: why regulation is good for you Let's face it, most South Africans don't like the idea of more rules. But in the crypto world, the right regulation doesn't mean more red tape, it means more protection, less risk, and real growth. According to the Financial Sector Conduct Authority (FSCA), crypto-related scams are on the rise in South Africa, particularly across social media platforms like WhatsApp, Facebook, and Instagram. Fraudsters often impersonate legitimate traders or companies, promising unrealistic returns and then vanishing once funds are transferred via Bitcoin or other crypto. These scams exploit crypto's semi-anonymous nature, making it harder to trace transactions and recover funds. A 2023 FSCA report warned that South Africans lost over R500 million to crypto scams in just one year, with most scams originating via social media or messaging platforms. So why would these scammers ever stop? While there's currently no formal government-mandated transaction declaration process between crypto wallets, increased regulation may soon require verified identification through Know-Your-Customer (KYC) processes at local and international exchanges. This would make it harder for criminals to use crypto anonymously and easier for authorities to trace illicit activity. Implementing regulation will: - Help prevent scams by setting minimum standards for exchanges and wallet providers. - Make tax reporting easier, so you know what you owe and can plan properly. - Encourage large institutional investors (like pension funds and asset managers) to enter the market, bringing stability and liquidity. - Create a legal path for innovation, like launching crypto linked debit cards, savings products, or smart investment platforms. My final thoughts are that this ruling is a win for the crypto community, but it's also a wake-up call: the wild west era of trading is ending. That's not a bad thing, it means South Africa is taking crypto seriously. And when the law takes something seriously, so does the market. Traders who stay informed, track their gains, and keep things clean will benefit the most. Crypto is here to stay. With the right legal framework, it can shift from the margins to the mainstream, unlocking innovation, securing investor trust, and contributing meaningfully to South Africa's financial ecosystem.
Zawya
a day ago
- Business
- Zawya
Portfolio diversification: PrimeXBT brings regulated crypto and traditional trading into one platform
With the recent expansion of its Financial Sector Conduct Authority (FSCA) licence to include crypto assets, leading multi-asset broker PrimeXBT has become one of the first in South Africa to offer a regulated all-in-one trading experience that combines both crypto and traditional markets. Local traders can now benefit from access to crypto and fiat-denominated accounts, deposits and withdrawals in crypto and fiat, and the ability to trade 150+ markets using either as collateral. This is an important milestone for broader crypto adoption in the country and the region. This article will discuss how PrimeXBT is redefining all-in-one trading, empowering South African traders with better ways to diversify their investment portfolios. Combining crypto and traditional markets in one PrimeXBT's FSCA-regulated offering provides traders access to global markets, including crypto futures, Forex, and CFDs on crypto, stocks, indices, and commodities. Trading accounts can be opened in USD or USDT on the broker's platforms, including PXTrader and MetaTrader 5 (MT5), allowing clients to choose fiat or crypto as collateral. Deposits and withdrawals can be made with fiat currencies like ZAR and USD or popular cryptocurrencies, including BTC, ETH, USDT, and USDC. With the broker's robust built-in crypto exchange, clients can easily convert any digital currencies they deposit or buy into USDT to fund their trading accounts. This seamless combination of digital and traditional markets provides traders with more ways to diversify and gain exposure to new assets in a secure and regulated environment. The broker is committed to enhancing accessibility in the region with competitive trading conditions that help lower barriers to market entry. Trading fees start from 0% on non-crypto CFDs and 0.05% on crypto CFDs, with spreads as low as 0.1 pips. For crypto Futures, fees begin at 0.01%. Through the broker's VIP Tiers, clients can receive substantial discounts on their trading fees based on their trading volumes. PrimeXBT also offers leverage of up to 1,000x, helping traders open larger positions with less capital. However, leverage can amplify both profits and losses, so it's important to understand how it works and use it responsibly as part of a well-managed trading strategy. PrimeXBT also works with top-tier liquidity providers to ensure traders receive fast and reliable execution, with the broker's platforms having 99.9% uptime during even the most volatile conditions. Providing a safe, secure and supportive environment As an FSCA-regulated broker, PrimeXBT is committed to providing its clients with the safest possible trading environment. It ensures strict compliance with all regulations and promotes responsible trading practices, including effective risk management. The broker takes the security of client data, funds and assets seriously, maintaining strict protocols for added protection. All client funds are segregated from the company's operational accounts, and digital assets are protected with multi-signature cold storage technology. PrimeXBT's comprehensive security system also includes multi-factor authentication, DDoS protection, and strong encryption. PrimeXBT also provides free educational content for all experience levels, including local seminars, webinars, tutorials, and market analysis. The broker offers advanced tools like TradingView integration, technical indicators, and Expert Advisors (EAs), equipping clients with everything they need to explore new market opportunities. If clients have any questions, they can contact PrimeXBT's dedicated support team 24/7 to get immediate help from real human agents. Reshaping South Africa's trading and investing landscape Through its integrated offering, PrimeXBT is reshaping how local traders engage with digital and traditional assets under a regulated framework. Harnessing the power of cryptocurrencies as trading collateral gives clients exciting new options to explore and more ways to effectively diversify their portfolios. The broker is setting new standards for regulated and responsible trading, earning users' trust and giving them the confidence to take on the global markets. PrimeXBT (PTY) LTD is an authorised financial services provider in South Africa with licence number 45697. PrimeXBT (PTY) LTD acts as an intermediary between the investor and the market maker which is the counterparty to the products purchased through PrimeXBT.
Mail & Guardian
2 days ago
- Business
- Mail & Guardian
Trading On MT5 with crypto: PrimeXBT brings regulated crypto trading to South Africa
Leading multi-asset broker South African traders can now access Crypto or fiat-denominated accounts on leading platforms like MetaTrader 5 (MT5), make deposits and withdrawals in Crypto or fiat, and use either as collateral for their trades. PrimeXBT also offers a robust Crypto exchange built into its platform, facilitating seamless currency conversions. This article will cover how the broker is reshaping the way local traders interact with the markets, empowering them to seize new opportunities confidently. Setting Standards for Regulated Trading Environments Regulatory clarity has always been essential to protecting traders and fueling innovation in the industry. Trust is one of the most important factors for traders choosing a broker. Reliability, support, transparency, and a genuine interest in client success set top brokers apart. Picking a regulated broker is often the best way to ensure these requirements are met. The addition of Crypto to its existing FSCA-regulated offering reinforces PrimeXBT's commitment to providing a secure, modern, and accessible trading environment for South African traders. It helps build trust and allows clients to explore new markets with full regulatory backing. In addition, the broker maintains strict security protocols to protect client data, funds, and assets. Unlocking New Opportunities for South African Traders MetaTrader 5 (MT5) is one of the most popular trading platforms in the industry. It offers access to PrimeXBT's MT5 integration and the addition of Crypto assets to its offering unlocks new opportunities for traders in South Africa. They can now access Forex and CFDs on Stocks, Indices, Crypto, and Commodities, from accounts denominated in USD or USDT. Deposits and withdrawals are available in ZAR via local banks and payment providers like Capitec Pay. The broker also accepts payments in BTC, ETH, USDT, and USDC. This allows Crypto investors to exchange their tokens for USDT and start trading on MT5 instantly. Leading the Way with Competitive Trading Conditions High trading fees have traditionally been an issue in South Africa, significantly impacting market accessibility and growth. This can include commissions, currency conversions, spreads, minimum deposits, and deposit and withdrawal fees, which can act as major barriers to traders with less money to invest. PrimeXBT addresses these issues, offering some of the most cost-effective trading conditions in the industry. Trading fees on all non-Crypto CFDs like Forex, Stocks, Indices, and Commodities are as low as 0%, with spreads starting from 0.1 pips. For Crypto CFDs and Crypto Futures, trading fees start at 0.05% and 0.01% respectively. Clients can also earn fee discounts of up to 50%, depending on their trading volume. There are no deposit fees, and withdrawal fees begin at $0. The broker also offers leverage of up to 1000x, helping clients trade more for less. This competitive fee structure helps local traders be more efficient in the markets and keep more of their funds for trading. Empowering Traders to do More with Crypto With the expansion of its FSCA-regulated offering, PrimeXBT proves its commitment to delivering an all-in-one trading experience that focuses on innovation, reliability and accessibility. The broker builds on its existing foundation of trust by providing secure and regulated access to Cryptocurrencies. Its powerful MT5 integration also allows traders to experience this on a reliable platform, empowering them to explore exciting new opportunities with confidence. Start trading with .
