BROKERS SHOULD BE HELD LIABLE
CITY CAPITAL IN PROVISONAL LIQUIDATION
I was walking on the Strand Beach in December 2008 with my kids. There was a massive water slide and I took my kids over to experience the thrill of going down the slide. I went to buy the tickets and noticed the owner of the slide getting out of a lovely AMG Mercedes. I wondered to myself why someone of this stature would be sitting in the sun selling rides. As my kids were rushing up and down the slide I recognised that it was Bertus Van Zyl, the CEO of City Capital a property syndication Company.
When I got home I was perturbed as to why a CEO of a multi million rand property company would be willing to sit on the beach to make a few hundred rand in the middle of December? I started to do some research on the internet and I knew something was seriously out of place. I attempted to get Nose Week to look into the matter, but to my knowledge they did not investigate the story.
I was very concerned as I knew that some so called financial advisors where actually getting pensioners to bond their homes and invest into City Capital high return income funds. The company offered advisors 10% commissions to sell their shares in a public company. Advisors that have sold City Capital shares to the public should be held liable.
When selling investments, there are many legal issues around offering shares to the public. One of them is FAIS and under the FAIS Act advisors are liable for bad advice. If you have invested in City Capital you need to lodge a complaint with the FAIS Ombudsman Mr. Charles Pillai immediately on this toll free number: 0860 324766
I urge all pensioners to ensure that they get proper financial advice. If something seems too good to be true, it most probably is.
If you are unsure about an advisor, request to see their qualifications, their license to give financial advice under the Fais Act and verify that they work for a reputable company goverened by the Financial Service’s Board.
Under this act, investors funds are protected and advisors can be held personally liable for rendering poor financial advice.
