FSCA finalises withdrawal of Mixirite’s licence

The Financial Sector Conduct Authority (FSCA) has made final the provisional withdrawal of trading company Mixirite’s licence.

This means the trader remains prohibited from conducting financial services business or accepting funds from clients.

The decision follows preliminary findings from an investigation, which found that allowing the company to continue operating would pose a real risk of harm to clients and the general public.

Its licence was initially suspended in June, with the financial regulator giving Mixirite an opportunity to respond to the provisional withdrawal notice.

The company was also invited to provide reasons why the FSCA should lift the provisional withdrawal or refrain from making it final.

“Mixirite duly submitted its representations to the FSCA. The FSCA considered the preliminary investigation findings, together with Mixirite’s submissions regarding the provisional withdrawal, and has taken the decision to finally withdraw the licence of Mixirite with immediate effect,” the watchdog said in a statement on Thursday.

Read: FSCA provisionally withdraws Mixirite’s licence amid concerns over sales practices

Last year, Moneyweb linked Mixirite’s operations – including UMarketPro and Protea Markets, which operated under the company’s FSCA licence – to the former operations of Banxso and AfriMarkets, as well as their owner, Harel Sekler.

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Moneyweb’s investigation found that Protea Markets and UMarketPro benefited from fraudulent social media ads promising automated monthly returns of more than R500 000 from a once-off “investment” of as little as R4 300.

The platforms claimed to be legitimate by referring to their FSCA licence.

While Mixirite did not oppose the final withdrawal of its licence, it disagreed with the regulator’s preliminary investigation findings.

“The FSCA is of the view that Mixirite contravened various financial sector laws in a material manner and that it no longer meets the fit and proper requirements to be a financial services provider.

The investigation identified several concerns, including:

• Mixirite’s agents using aggressive, manipulative and high-pressure sales tactics when engaging with clients;
• Financial advice being provided by individuals who were not authorised representatives, alongside promises of unrealistic or guaranteed returns;
• A failure to conduct appropriate suitability and needs analyses;
• Inadequate risk disclosures to clients; and
• Significant broader governance concerns.

The FSCA has confirmed that its probe is at an advanced stage.

The scope of the investigation has since been expanded to include Complyxpert (Pty) Ltd, Start Stream (Pty) Ltd, Rayn Investments (Pty) Ltd and Advice 365 (Pty) Ltd, as well as the key individuals associated with these entities.

“Given the sensitivity of the matters under consideration and the need to preserve the integrity of the investigative process, the FSCA is unable to disclose further details at this stage,” it added.

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