FSCA warns of investment scams impersonating legitimate financial firms

The FSCA said Discovery Online Trade Plus was purporting to be an authorised financial services provider and had used the Financial Services Providernumber of Gikuyu Brokers Investments.

The Financial Sector Conduct Authority (FSCA) has issued public warnings against three operations it says are using the identities of legitimate financial businesses, as it steps up scrutiny of how consumers are targeted through online investment and lending offers.

The warnings, issued on 6 November, involve Discovery Online Trade Plus, Halifax Loans SA and individuals using the identity of Aeon Investment Management to promote forex trading through WhatsApp.

In a separate action announced a day earlier, the regulator made the withdrawal of financial services provider Mixirite’s licence final after preliminary findings of aggressive sales practices, promises of unrealistic or guaranteed returns and governance concerns.

The cases highlight different risks facing consumers: operations using the names and licence details of authorised businesses to appear legitimate, and a licensed provider that the regulator says failed to meet the standards required of it.

The FSCA said Discovery Online Trade Plus was purporting to be an authorised financial services provider and had used the Financial Services Provider (FSP) number of Gikuyu Brokers Investments, number 51424, in communications with potential investors.

Gikuyu Brokers confirmed that it had no association with Discovery Online Trade Plus. The FSCA said the operation was not authorised to provide financial services and that it could not contact it because no contact details were available.

In the Halifax Loans case, the company allegedly presented itself as affiliated with Halifax Insurance Brokers, an authorised provider with FSP number 9998, and used the broker’s details when offering loans to the public.

Halifax Insurance Brokers also confirmed that it had no association with the company. The FSCA said Halifax Loans was not authorised to provide financial services and that it had been unable to reach the business.

The third warning concerns individuals using Aeon Investment Management’s name, physical address and company registration number to promote forex trading through a WhatsApp group.

Aeon, an authorised provider with FSP number 27126, confirmed that it was not associated with the individuals. They did not respond to the regulator’s enquiries.

The FSCA urged consumers to be cautious of unsolicited investment and trading offers, particularly those made through social media. It identified unrealistic or exaggerated returns, upfront payments, demands for additional money to release investments, paid training and pressure to act urgently as warning signs.

Consumers can verify whether a financial services provider or individual is authorised by using the regulator’s online FSP search or calling its toll-free number, 0800 110 443.

The warnings come after the FSCA finalised the withdrawal of Mixirite’s FSP licence, number 52110, with immediate effect.

The regulator provisionally withdrew the licence on 24 June 2026 following preliminary findings in an ongoing investigation. Mixirite was given an opportunity to make representations and did so, although it did not oppose the provisional withdrawal becoming final. It disagreed with the investigation’s preliminary findings.

The FSCA said its preliminary investigation findings included that Mixirite’s agents used aggressive, manipulative and high-pressure sales techniques, while people who were not authorised representatives provided financial advice.

The findings also included promises of unrealistic or guaranteed returns, failures to conduct appropriate suitability and needs analyses, inadequate risk disclosures and significant governance concerns.

The regulator said it considered the findings and Mixirite’s submissions before deciding to finally withdraw the licence with immediate effect. It said it was of the view that the company had materially contravened financial sector laws and no longer met the fit and proper requirements to operate as a financial services provider.

The broader investigation has been expanded to include Complyxpert, Start Stream, Rayn Investments and Advice 365, as well as the key persons associated with those businesses, for possible contraventions of the Financial Advisory and Intermediary Services Act.

The FSCA said it could not disclose further details while the investigation continued.

The warnings and licence action also come as the FSCA’s Consumer Advisory Panel highlights the changing risks facing financial customers.

In its second annual report, covering April 2025 to March 2026 and published on 5 November, the panel said its key areas of focus included artificial intelligence, digital fraud and deepfake technology, online trading platforms and financial influencers.

The panel, established in November 2023, provides consumer-focused insights and recommendations to inform the regulator’s work. It also focused on protections for vulnerable consumers, including social grant beneficiaries.

Brendan Pearce, chairperson of the panel, said financial services should be judged not only on whether consumers can access them, but also on whether they deliver fair value and positive outcomes.

As financial services evolve, consumer interests and needs must remain central, Pearce said.

The FSCA urged consumers to check the authorisation of providers before accepting financial advice, assistance or investment offers, and to investigate further before making payments if a provider’s authorisation status is not clearly displayed.