South Africans warned to stay away from this one company
South Africans are being warned to stay away from a trading company, Mixirite, following the withdrawal of the firm’s FSP licence due to a “real risk of harm” to the public.
Mixirite (Pty) Ltd is a South African financial services provider and online trading platform that operates as an intermediary broker for retail investors.
Through platforms including UMarketPro and Protea Markets, the company offers trading in foreign exchange, shares, and commodities.
However, the FSCA has now stopped the company from conducting any further financial services business while it investigates its practices.
In a statement, the regulator said it had provisionally withdrawn the licence of Mixirite (Pty) Ltd FSP 52110 (Mixirite).
It explained that it was “concerned that there is a real risk of harm to clients and/or the general public if Mixirite continues its operations as a financial services provider.”
The provisional withdrawal follows preliminary findings from an ongoing investigation into the company’s activities.
According to the FSCA, investigators identified several areas of concern, including what it described as “apparent aggressive, manipulative and high-pressure sales techniques” used by Mixirite’s agents when dealing with clients.
The regulator also raised concerns about financial advice allegedly being provided by individuals who were not authorised representatives, as well as promises of unrealistic or guaranteed investment returns.
The FSCA said the company appeared to have failed to conduct appropriate suitability and needs analyses before recommending financial products to clients.
It also alleged that customers were not provided with adequate disclosures about the risks associated with their investments.
These findings prompted the regulator to take immediate action to prevent further potential harm while the investigation continues.
As a result of the provisional withdrawal, Mixirite is no longer permitted to carry out any financial services business or accept additional funds from clients.
“The consequence of the provisional withdrawal is that Mixirite is unable to conduct any further financial services business or receive any additional funds from clients,” the FSCA said.
Investigation is ongoing
The authority stressed that the action taken is provisional rather than final and is based on preliminary findings.
“The FSCA emphasises that this is a provisional withdrawal of Mixirite’s licence based on preliminary investigation findings,” it said.
The regulator explained that it will decide whether the withdrawal should become permanent only after its investigation is complete and it has considered all available evidence, including any submissions made by the company.
“Once the investigation is finalised, the FSCA will consider the findings and any submissions made by Mixirite,” the authority said.
Mixirite has been given an opportunity to respond to the allegations and explain why the provisional withdrawal should be lifted or not made final.
The FSCA also indicated that the investigation remains active and could expand if new information emerges during the course of its inquiries.
“The investigation remains ongoing and may encompass additional aspects arising from the information obtained to date,” it said.
Because the investigation is still underway, the regulator said it is unable to disclose further details at this stage.
“In light of the sensitivity of the matters under consideration and to preserve the integrity of the investigative process, the FSCA is limited in the detail it can disclose at this stage,” the authority said.
The regulator added that it will provide further updates once the investigation is complete and a final decision has been made.
“The FSCA will update members of the public in due course regarding the investigation and its decisions in this matter once the investigation has been finalised.”
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