Livestock Wealth, a crowdfunding platform, has denied claims that it may be conducting its online investment services unlawfully, and it’s fully cooperating with the Financial Sector Conduct Authority’s (FSCA) enquiry. The FSCA recently released a statement indicating that the online investment platform is being investigated and might be functioning illegally, as it hasn’t registered with the financial authority.
In its statement, the FSCA advised the public to exercise caution when interacting with Livestock Wealth Financial Services (Livestock FS), the investment company’s insurance branch, and Livestock Wealth itself. According to the FSCA, Livestock Wealth is not permitted to carry out any business related to financial services under the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act).
Crowd-funding platform Livestock Wealth has denied allegations of operating its online investment services illegally and stated it’s collaborating fully with the ongoing investigation by the Financial Sector Conduct Authority (FSCA). Contrary to the FSCA’s warning, Livestock Wealth maintains that its insurance arm, Livestock Wealth Financial Services (Livestock FS), is a licensed financial service provider.
The FSCA had expressed concern about Livestock Wealth offering public investments into livestock and/or agricultural products with promises of profitable returns upon product maturity. It also flagged the use of Livestock FS’s financial service provider number on Livestock Wealth’s website as concerning.
Livestock Wealth, founded by electro-mechanical engineer Ntuthuko Shezi in 2015, claims it has enabled thousands of people to invest in physical agricultural assets through its platform, promising higher interest returns than mainstream investment options.
Shezi responded to the FSCA’s statement, clarifying that he was informed by the FSCA in 2015 that companies trading in agricultural goods are not legally required to register with the financial authority.
Shezi added that Livestock Wealth FS is working on setting up insurance coverage to protect its network of farmers and ensure customers get a timely return on their investments. According to the company’s website, it has generated over R20.6 million in profit for its investors since its inception.
1The public has been urged by the FSCA to verify the authorization of individuals or entities by calling a toll-free number or carrying out an online search.
