FSB FAILS TO PROTECT THE PUBLIC:
Recent failed property syndication companies, licensed by the FSB have lost over a Billion Rand of shareholders funds, mainly pensioners’ life savings. Talk Money has been trying to warn people about the danger of investing in property syndication companies. But what is the Financial Services Board doing to protect the public from investing their life savings into these syndication companies?
The fact that the FSB licensed these syndications is shocking and actually “without intent” aids these schemes in their marketing efforts. Every one of these schemes uses their FSB license to promote their offerings in advertisements and on marketing material to provide a false sense of security.
The public would like to believe that if a scheme is licensed by the FSB then surely every thing must be above board. Not so, as is the case of all the latest failed syndication companies and one should not believe that your investment is safe just because a scheme is licensed by the FSB.
The FSB seems to have failed to act against any of these syndication companies and only revoked their licenses once liquidation proceedings were underway. As once again the latest case of Bluezone Property Syndication Investments that are sinking into deep water.
The FSB had threatened to withdraw Bluezone's license, but only acted nearly a month after Bluezone Spitskop Property Syndication was put into liquidation and has failed to act against Bluezone Financial Services which to date remains licensed by the FSB.
The only ones usually to profit from these schemes are the directors and brokers, who may I add many are also licensed by the FSB. This again the usual case with Bluezone’s Chief Executive, Hennie Lamprecht who is said to have earned around R50m to fund his high life style.
Stephen Leppan
http://talkmoney.co.za/
