The South African watchdog is investigating Finwel Financial Management Services regarding allegations clients experienced losses on low-risk investments sold to them by the firm.
Marius Schonken and Robert Edmund De Jongh are being investigated by the Financial Sector Conduct Authority (FSCA) for their roles in the firm recommending the products, which were sold as having guaranteed capital protection.
Some of Finwel’s clients have lodged complaints against Schonken with the Office of the Ombud for Financial Services Providers.
The FSCA said the purpose of the investigation is to establish whether the investigated parties contravened any financial sector laws, adding that the investigation is ongoing and no findings have yet been made. The FSCA added it will update the public on the investigation in due course.
