FSCA sounds alarm on Livestock Wealth’s unlawful conduct

The Financial Sector Conduct Authority (FSCA) is warning members of the public against Livestock Wealth (Pty) Ltd, as the entity is unauthorised to offer investment advice or services to those looking to get into investing in livestock or agricultural products.

“It has come to the attention of the FSCA that Livestock Wealth may be unlawfully offering members of the public investment into livestock and/or agricultural product(s), offering profitable returns upon maturity of the livestock and/or agricultural product(s),” the FSCA said in a statement on Wednesday.

“The Authority points out that Livestock Wealth is not authorised to render any financial services-related business in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act),” the FSCA said.

On its website, Livestock Wealth has listed a macadamia nut tree, free-range ox and a pregnant cow as some investment options available to budding investors.

Investments can cost between R2 000 and R18 730 for investors to get in, with the term or maturity ranging from six months to six years to realise returns.

“Buy & own real living, breathing, farm assets which are matured by farmers and then sold for guaranteed profits,” Livestock Wealth’s website reads.

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Livestock FS

On the other hand, the FSCA has noted it will also be looking into Livestock Wealth Financial Services (Livestock FS) as – although the entity does exist as a registered financial services provider (FSP), according to the FSCA – Livestock Wealth was found to be using Livestock FS’s FSP number on its website.

According to FSCA records, Livestock FS is authorised to provide category I financial products and services in short- and long-term insurance and pension funds.

“The FSCA points out that, for a person to offer financial services in South Africa, they must be licensed to do so by the FSCA and have acquired the correct category of licence. While Livestock FS is authorised to provide advice and intermediary services relating to insurance products and pension benefits, it is not authorised to provide any financial services relating to deposits or investments,” the FSCA said.

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