This is according to Sean Coetzee, owner and co-founder of Khwezi Trade, commenting in response to regulatory measures recently enforced by the FSB. Khwezi Trade, which offers an online trading platform and manages and trades clients' investments, is authorised and fully regulated.
"A person trading clients' investments is required to be an authorised financial services provider," Manasse Malimabe, FSB financial advisory and intermediary services compliance head, recently said on BusinessDay Live. The FSB has advised consumers who wish to conduct financial services with an institution to check beforehand with the FSB as to whether or not the institution and its brokers are authorised.
Khwezi Trade offers a broad range of local and global investing services through its multi-asset trading platform, and through its online partnerships. "In addition to being fully regulated, Khwezi Trade holds a Category One FSB License, as well as a Category Two FSB License," Coetzee states.
The Category One Intermediary License is required in order to provide advice or render intermediary services on an instruction only basis, while a Category Two Discretionary License is needed in order to offer services on a discretionary basis. The Category Two License allows Khwezi Trade to manage client funds and make decisions on their behalf as agreed to and recorded within their discretionary mandate.
Segregated client funds and processes are strictly monitored and regulated under the Financial Advisory and Intermediary Services (FAIS) Act, and client accounts are audited by Khwezi Trade's independent auditors. Khwezi Trade is also fully FSB compliant utilising Moonstone Compliance (Pty) Ltd, an FSB authorised provider of compliance services to independent financial advisory practices and has monthly reviews with its compliance officer.
Solid regulatory frameworks provide a measure of competency, improve market conduct and protect consumer investment.
"Investors need to be circumspect when selecting a financial services provider to which to entrust their funds," Coetzee advises. "This is even more so now given the current environment in the financial markets."
