The Financial Sector Conduct Authority (FSCA) has imposed an administrative penalty of R2 million on Pioneer FX and its director, Quintin Moorcroft, jointly. The FSCA has also debarred Moorcroft for a period of 10 years.
According to a statement released by the FSCA, Pioneer FX and Moorcroft contravened section 7(1) of the Financial Advisory and Intermediary Services Act by rendering financial services without authorisation. The FSCA conducted an investigation and found that Pioneer FX and Moorcroft had traded in contracts for difference (CFDs) on behalf of 276 clients between March 11 and July 5 2019 through an account at IFX Brokers Holdings. The FSCA concluded that Pioneer and Moorcroft had acted as a discretionary financial services provider without having the required authorisation to do so.
Among other things the authority took into account in aggravation that Moorcroft also provided financial advice to clients relating to future market movements, that he previously contravened section 7(1) of the Act, that he had a substantial number of clients, and that his clients lost a material amount of money.
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