African United Stokvel red-flagged by FSCA

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African United Stokvel red-flagged by FSCA
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The authority says a successful search and seizure operation was conducted at the Stokvel's offices in June. Moneyweb FSCA

The Financial Sector Conduct Authority is warning consumers to be cautious about doing any financial services-related business with African United Stokvel on suspicion the entity is participating in unauthorised business and breaching some financial sector laws. In a statement issued on Monday, the authority confirmed it conducted search and seizure operations at the Bryanston-based entity’s offices in June as part of ongoing investigations into its affairs.

Read: A warning the FSCA shouldn’t have needed to issue “The social media pages of United African indicate that it is a digital stokvel that invests clients’ funds in property and telecommunications. It claims that the returns from these investments are used to pay client returns,” the FCSA said. “There are various complaints from clients stating that although they were promised returns, they have not received them,” it added.

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