With the world’s population bursting at the seams, it’s inevitable that new businesses and companies materialise out of thin air – every day. Irrespective of the decision you are facing – whether applying for insurance, converting your pension to cash or taking a big step like financial emigration, it’s imperative that you do an accreditation check to make sure your money is safe.
Don’t be swindled
You may have heard the name Charles Ponzi somewhere in your life. In fact, it’s almost impossible that the term ‘ponzi scheme’ hasn’t crept up in the conversation some time in the 20+ years you’ve been on this earth (we assume you’re older than 20 here).
In just a few months, Charles Ponzi made the equivalent of over $4,5M by offering investors a highly attractive return on investment. His scheme centred on international reply coupons (IRC) which could be exchanged for airmail postage stamps, sometimes for a profit of up to 400 percent. But, of course, this was just a scheme – and essentially he was paying investors from money gained from new investors. Or should we call them victims?
Ponzi was by no means the biggest swindler in history, though, although his name would go down in infamy history.
There is also Kazutsugi Nami, the Japanese businessman who ran an investment scam that defrauded 37 000 people of $1,4bn. And remember JPMorgan traders Javier Martin-Artajo and Julien Grout who artificially increased the market value of securities to hide losses of over $6,2bn? Of course, there’s no chance you’ll have forgotten Bernie Madoff who was sentenced to 150 years in prison for defrauding his clients of $65bn,
Yes, fraudsters are all around – which is why it’s becoming ever more important to check credentials – especially when it comes to financial services providers.
South African emigration – choosing qualifying FSPs
Luckily for you, the Financial Services Board (FSB) has made it quite easy for consumers to check the credentials of the financial services providers they plan to use. Firstly, it’s crucial that the financial services provider site their accreditation and registration numbers on the communication they send you. This is usually a bracketed section in the disclaimer that contains an acronym such as FSP as well as a number. You can use this number, or the company’s name to search for their accreditation on the FSB website. Remember to check that the licence is still active – FSPs have to submit annual compliance reports and financial statements to the FSB regardless of when they got their licence. If they don’t comply – they will lose their licence.
Of course, if the service provider practises in multiple countries it becomes a bit more tricky. We advise that you check the local equivalent of the FSB for the country you are in.
Lastly – check the credibility of your service provider by searching for them on Google, searching for testimonials on their site or elsewhere and talking to people who have used their services. If there are any complaints about their services you are bound to find it on their social media pages. If it’s a reputable provider they won’t be offended if you ask around or confront them about your concerns. They are dealing with your money, after all.
You know you’re in good hands with finglobal.com. We boast comprehensive accreditation as company, as well as in an individual capacity – all our financial advisers are authorised to give you advice. So if you’re using our services to convert your pension fund to cash, transfer money from South Africa or for formal emigration from South Africa, you can rest assured that you’re in good hands.
But don’t take our word for it; rather see what our customers have to say. Still not sure? See our list of credentials below:
- South African Financial Services Board: Licensed Financial Services Provider # 42872.
- South African Reserve Bank: approved foreign exchange intermediary.
- Professional Provident Society: Internationally accredited broker.
- South Africa’s Financial Intelligence Centre Act (FICA): fully compliant provider.
- Financial Advisory and Intermediary Services Act (FAIS): fully compliant provider.
- Bidvest Bank: banking partner
- Westpac Bank: appointed provider.
- Allan Gray: appointed provider
- Investec: appointed provider
We also work with all major South African banks to see to it that your emigration from South Africa is a smooth ride. And with a 100% success rate in providing more than 60 000 clients in 105 countries – you know that finglobal.com has ticked all the necessary boxes.
If you require more information on our services or if you would like to speak to a financial consultant, we’ll call you.
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