The FSCA expects ‘the quantum of the penalties’ to serve ‘as a strong deterrent against similar misconduct in the market’. Image: Banxso screenshot/Moneyweb The Financial Sector Conduct Authority (FSCA) has fined Banxso’s directors and key individuals a combined R2 billion and reported the matter to the South African Police Service (SAPS) for criminal investigation. The regulator says it will also provide the SAPS with all evidence collected during its multi-year probe into the trading platform and its key individuals.
The FSCA stated that the regulatory action followed an extensive investigation, which “found that Banxso and its key persons,inter alia, misappropriated client funds, provided false and/or misleading information to clients and to the FSCA, promised clients unrealistic returns and failed to act in the best interests of its clients”. The FSCA has also imposed a R20 million fine on the Banxso CEO at the time, Manuel de Andrade. A R10 million fine has been imposed on Mohammed Bux, and a R5 million fine on Henry James Simpson, both former key individuals.
The FSCA also debarred Sekler, Sneider, De Andrade, and Bux for 30 years each, while Simpson has been debarred for 10 years. At the time, Banxso denied any wrongdoing and claimed it had been hacked by a third party, with the leads illegally inserted into its IT system. Over the course of the investigation, more than 380 people contacted Moneyweb, claiming they had lost a combined R280 million.
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