FSCA Issues Red Flag for Capital40 Investment Scheme
The Financial Sector Conduct Authority (FSCA) has issued a stark warning to the South African public regarding Capital40 Investments. This company is actively soliciting investments under highly questionable circumstances, raising serious concerns about potential fraud.
Consumers are being urged to exercise extreme caution when dealing with Capital40. The company is reportedly encouraging investments ranging from R1,000 to a staggering R400,000, promising monthly returns between R320 and R128,000. These figures are deemed unrealistic and are a major red flag, suggesting potential fraudulent activity.
Capital40 claims to offer investors access to cutting-edge artificial intelligence trading software. This software supposedly automates trading decisions in financial markets, generating substantial profits for clients. However, the FSCA emphasizes that such guarantees should be met with extreme skepticism, especially considering that Capital40 is not authorised to provide financial services to the public in South Africa, according to FSCA regulations.
Despite attempts by various media outlets, including Cape{town} Etc, to contact Capital40 for a response, the FSCA has also reported that they have been unable to establish contact with the company.
Due Diligence is Key
The FSCA strongly advises the public to conduct thorough due diligence before considering any investment opportunities. Verifying the legitimacy of financial service providers is crucial. Here are some vital steps recommended by the FSCA:
- Check Authorisation: Confirm that the individual or company is authorised by the FSCA to provide financial products and services.
- Verify Advisory Category: Ensure that the provider is licensed for the specific type of advice they are offering. Some may only be licensed for low-risk products but illegally present more complex options.
- Cross-check FSP number: Always verify the FSP number with the FSCA directly.
Protect yourself from potential investment scams. Always verify before you invest!