FSCA Withdrew The License of Basfour

Prior to this, Basfour was permitted to perform intermediary services in relation to FX investments and derivatives by the Financial Sector Conduct Authority as a Category I financial services provider. From April 11, 2012, Basfour essentially functioned with a minimal presence in South Africa.

After receiving multiple complaints from the general public, the FSCA launched an inquiry, which showed that Basfour:

despite not having the proper authorization, gave clients financial advice;

without revealing that Basfour was the counterparty to the client transactions, traded as principal with its customers while recommending them to embark into such trades;

excessively coerced its customers into making deposits and trading on the site;

failure to timely process withdrawals;

omitted to disclose important details, such as the costs and hazards involved with the trade.

Basfour therefore flagrantly violated the FAIS Act's sections 7(1)(a) and 13(3), its license condition 3, sections 2 and 11 of the General Code, and sections 3(1)(b) through (e), I and (h) of the Forex Code. From 1 January 2018 to 30 August 2019, Basfour's clients experienced losses of at least R 58,608,810.

In accordance with section 167(1)(a) of the Financial Sector Regulation Act No. 9 of 2017 (the FSR Act), the FSCA has decided to: • Impose an administrative penalty of R 58,608,810 on Basfour; • Withdraw the license of Basfour (license number 42020); and • Debar Ms. Jane Engelbrecht, who is the sole director, Key Individual (KI), and a representative of Basfour, for a period of 10 years.

In accordance with section 167(1)(a) of the Financial Sector Regulation Act No. 9 of 2017 (the FSR Act), impose an administrative fine of R 58,608,810 on Basfour; • revoke Basfour's license (license number 42020); and

Debar Ms. Jane Engelbrecht for a term of ten years as the only director, Key Individual (KI), and Basfour representative.