{"id":68928,"date":"2025-05-02T17:13:07","date_gmt":"2025-05-02T17:13:07","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/68928\/"},"modified":"2025-05-02T17:13:07","modified_gmt":"2025-05-02T17:13:07","slug":"fsca-debars-financial-adviser-for-five-years-fines-him-r1-1-million","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/68928\/","title":{"rendered":"FSCA debars financial adviser for five years, fines him R1.1 million"},"content":{"rendered":"

\n\t\tNobody is allowed to act as a financial service provider and give financial advice without being registered with the FSCA.\n\t<\/p>\n

The FSCA has debarred a financial advisor and fined him R1.18 million for working as a financial services provider without being registered.<\/p>\n

The Financial Sector Conduct Authority (FSCA) debarred Pierre Erasmus for five years and imposed an administrative penalty that includes the cost of the FSCA\u2019s investigation.<\/p>\n

The FSCA already warned the public in November 2023<\/a> to act with caution when conducting financial services business with FX Squad, which was not registered as a company and Petrus Rasmus Erasmus, known as Pierre.<\/p>\n

In its warning the FSCA said it received information that Erasmus and FX Squad offered to trade in forex on behalf of consumers<\/a> and that Erasmus and FX Squad may be conducting unregistered financial services and\/or the business of a bank by taking deposits from members of the public.<\/p>\n

\u201cThe investigated parties are not authorised to render any financial advisory and\/or intermediary services in terms of the Financial Advisory and Intermediary Services Act and are also not registered as banks in terms of the Banks Act,\u201d the FSCA said.<\/p>\n

ALSO READ: FSCA warns consumers about investments with these unregistered entities<\/a><\/strong><\/p>\n

FSCA investigation showed Erasmus collected funds like a bank<\/strong><\/p>\n

The evidence collected during the FSCA\u2019s investigation showed that Erasmus offered his services and acted as a financial services provider without authorisation. The FSCA says in a statement that Erasmus collected funds from members of the public (clients) and used it to trade in contracts for difference (CFDs).<\/p>\n

According to Investopedia, a CFD is an arrangement made in financial derivatives trading where the differences in the settlement between the open and closing trade prices are cash-settled, while there is no delivery of physical goods or securities. The FSCA says he incurred substantial losses during his trading activities.<\/p>\n

Erasmus also gave financial advice to his clients by providing them with trading signals. A trade signal is a trigger to buy or sell a security and is generated by various analyses, such as technical indicators and mathematical algorithms, according to Investopedia. Many clients incurred losses when they traded in CFDs based on Erasmus\u2019 advice.<\/p>\n

The FSCA found in its investigation that Erasmus contravened section 7(1)(a) of the Financial Advisory and Intermediary Services (FAIS) Act in a material way. The practice of providing trading signals amounts to financial advice and that requires a financial services provider licence in terms of the FAIS Act.<\/p>\n

ALSO READ: FSCA dishes out fines for R2.1 million, R1.6 million and R200 000<\/a><\/strong><\/p>\n

How to check if someone is registered and licensed<\/strong><\/p>\n

The FSCA says consumers should always check:<\/p>\n