The FinancialSouth Africa’s Financial Sector Conduct Authority (FSCA) has imposed a 10-year ban on Kabelo Emanuel Mogale and fined him R1,015,315.87 ($54,827) for providing unlicensed financial signals in the forex market.
An FSCA investigation revealed that Mogale was operating under the alias “Forex Private Jet Injectors,” offering unauthorized financial advice and forex signals via Telegram. The FSCA stated that these actions breached the Financial Advisory and Intermediary Services Act (FAIS Act), which mandates that individuals offering financial services must hold a valid license.
The regulator determined that Mogale’s forex signals and trading tips qualified as providing financial services. Additionally, the investigation found that Mogale failed to cooperate with authorities, further violating section 139(2) of the Financial Sector Regulation Act No. 9 of 2017.
Providing financial signals without proper licensing is illegal under South African law, and those engaging in such activities face criminal penalties. The FSCA emphasized that signal providers who charge fees or take a share of profits must be licensed to operate legally within the financial services sector.
Investors are urged to verify the licensing status of any financial service provider, particularly in the online trading and forex markets, to avoid falling victim to unlicensed operators. The FSCA continues to oversee and regulate forex brokers in South Africa, ensuring that platforms operating within the country comply with local regulations.
In a broader effort to enforce compliance, the FSCA recently warned against 14 unlicensed Financial Service Providers (FSPs) offering derivative trading options. This warning, issued on March 28, 2024, highlighted the risks associated with unregulated financial activities and reinforced the need for investor vigilance.