Tag Archive | pyramid schemes

Financial Sector Bill after Ponzi thieves

“Twin Peaks” also to help on pyramid schemes….

Finance minister, Nhlanhla Nene, in taking the Financial Sector Regulation Bill or the “Twin Peaks”nene legislation, to its final stages of debate after public hearings has said the Bill will provide greater powers to regulators to deal with Ponzi and pyramid schemes.
It is unusual for a minister to comment whilst submissions are being heard but in this case Minister Nene was responding in writing to a parliamentary question by Mosiuoa Lekota (COPE) on whether government has taken action against such schemes.
Market Conductor Regulator on watch
The Minister indicated that a total of 40 schemes have been investigated from 1 January 2014 to 30 June 2015 with 30 investigations completed and 10 still underway. In some cases the Reserve Bank has concluded a shutdown of Ponzi schemes.
He said that according to the Financial Sector Regulation Bill as proposed, by setting up a market conduct regulator, the government will find it easier to deal with such irregularities which will in fact, he said, “close the net on Ponzi schemes.”
In terms of the Bill, the proposals are that Ponzi schemes as such may be directly “prohibited” which means that the activity itself can lead to investigation and prosecution by the new Financial Sector Conduct Authority, rather than the current situation, the Minister said, “where a combination of other laws had been required to indirectly reach what could be Ponzi operations”.
The same applied to pyramid schemes but these are not specifically mentioned as they are more a generalised activity.
Other articles in this category or as background
Financial Sector Regulation Bill heralds twin peaks – ParlyReportSA
Treasury calls for “Twin Peak System” with two financial bills – ParlyReportSA

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