FSCA fines KEB Prosperity for publishing misleading information

Picture: Supplied

Picture: Supplied

Published Aug 30, 2022

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STAFF REPORTER

The Financial Sector Conduct Authority (FSCA) has imposed an administrative penalty of R50 000 on KEB Prosperity (Pty) Ltd, based in Sandton, Gauteng. This follows an investigation by the FSCA which revealed that from September 1 to November 11, 2021 it contravened the Financial Advisory and Intermediary Services Act by publishing false, deceptive, misleading and incorrect statements on its website.

KEB Prosperity falsely or incorrectly advertised on its website that it was a financial services provider regulated and authorised by the authority as an “investment firm” offering investments and trading in derivatives and contracts for difference. According to the FSCA’s list of financial services providers, the firm is registered only to market long-term insurance and friendly society benefits.

The FSCA imposed an administrative penalty of R50 000 on KEB Prosperity in terms of the Financial Sector Regulation Act. The company co-operated fully with the FSCA in this matter.

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, by clicking on this here. There are instances where someone is registered to provide basic advisory services for a low risk product and then offer services of a far more complex and risky nature.

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