FSCA issues a public warning against Ever Grow Matrix (Pty) Ltd The Financial Sector Conduct Authority (FSCA) warns the public to be cautious when conducting financial services business with Ever Grow Matrix (Pty) Ltd (Ever Grow).
The FSCA said it received information that Ever Grow invites members of the public to invest R300 in its scheme. When an investor joins, they are obliged to recruit and introduce two new members to the scheme to progress.
"The activities of Ever Grow appear to have the characteristics of a pyramid scheme. Ever Grow has also instructed members of the public to deposit their funds into the bank account of SAMMAG (Pty) Ltd (SAMMAG).
"The chief executive officer of Ever Grow is a director of SAMMAG. Ever Grow and SAMMAG were unavailable for comment," it said.
The FSCA said it would like to reiterate that pyramid schemes are illegal and deem it necessary in the interest of the public to issue this warning.
"The FSCA has referred the matter to other agencies who have the mandate to deal with pyramid schemes. Members of the public should avoid any offer that may be a pyramid scheme, noting that they are illegal for all who participate in the scheme and there is no protection when things go wrong and money is lost," it said.
The FSCA said members of the public should rather invest with authorised financial institutions, checking:
- That an entity or individual is authorised by the FSCA to provide financial products and services, including for giving recommendations about how to invest.
- What category of advice the person is registered to provide, there are instances where companies or people are registered to provide basic advice for a low-risk product and then offer advice on far more complex and risky products.
- That the FSP number utilised by the entity or individual offering financial services matches to name of the FSP on the FSCA database.
The FSCA said one of the following methods may be used to confirm the status and FSP number of a service provider or a person that claims to be an authorised service provider:
1) Toll-free number: 0800 110 443
2) Online search for authorised financial institution by license category: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-EntitiesPersons.aspx
3) Online search for a financial institution that is an authorised FSP in terms of the FAIS Act: https://www.fsca.co.za/Fais/Search_FSP.htm
PERSONAL FINANCE