South African regulator the Financial Sector Conduct Authority (FSCA) has warned investors to act with caution when dealing with Praesidium Advisory Services.
This follows the FSCA’s decision to provisionally suspend its license due to information received about the firm which indicates it could be misusing its financial services provider (FSP) licence.
The FSCA said in a statement that it received complaints alleging that Praesidium Advisory may be “operating an unapproved foreign collective investment scheme and soliciting investments from members of the public”.
It also said that Praesidium Advisory is reportedly offering returns as high as 40% per annum.
Not approved
The investors were alerted to the fact the Praesidium Global Fund and/or the Praesidium Mauritius Managed Fund, which are being offered by the firm to members of the public, have not been approved by the FSCA.
Upon concluding its investigation, the FSCA will decide whether to withdraw the FSP licence or lift the suspension.
The FSCA has clarified that the entity under investigation is not linked to Praesidium Capital Management, a licenced financial service provider.
