From CompliNews

FSCA fines Pioneer FX & Quintin Moorcroft R2m jointly and debars Quintin Moorcroft for 10 years for contravening financial sector laws

The Financial Sector Conduct Authority (FSCA) has imposed an administrative penalty of R2 million on Pioneer FX (Pty) Ltd (Pioneer FX) and Mr Quintin Moorcroft (Moorcroft) jointly. The FSCA also debarred Moorcroft for a period of 10 years. The FSCA found that at least between 11 March 2019 and 4 August 2019, Pioneer FX and Moorcroft contravened section 7(1) the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS), in that Pioneer FX and Moorcroft rendered financial services without the necessary authorisation.

The FSCA conducted an investigation subsequent to complaints relating to the authorisation of Pioneer FX and Moorcroft and found that Pioneer FX and Moorcroft traded in Contracts for Differences (CFDs) on behalf of 276 clients between 11 March 2019 to 5 July 2019 through a Multi-Account Manager (MAM) account at IFX Brokers Holdings (Pty) Ltd (IFX).

Trading decisions made by Moorcroft caused trades to be executed on client accounts.

The Authority is of the view that Pioneer and Moorcroft acted as a discretionary financial services provider, without having the required authorisation to do so.

The FSCA is of the view that Moorcroft and Pioneer FX contravened section 7(1) of the FAIS Act in that they conducted financial services as defined in the FAIS Act; and/or that Moorcroft caused Pioneer FX to contravene section 7(1); and/or that Moorcroft attempted, or conspired with, aided, abetted, induced, incited or procured Pioneer FX to contravene section 7(1) in a material way.

View the FSCA release here