Understanding the FSCA Investigation Process
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In November 2024, the Financial Sector Conduct Authority (FSCA) initiated an investigation into Eklavya Asset Managers and its trading platform, SolisMarkets. This inquiry emerged amidst client concerns primarily related to difficulties with investment withdrawals. Initially, the FSCA indicated potential issues with SolisMarkets possibly operating without proper licensing. However, they soon clarified that the investigation was still in its early stages and no conclusions had been drawn.
Throughout the review process, Eklavya demonstrated a commitment to compliance by fully cooperating with the FSCA, supplying all requested documentation and information. Remarkably, the company faced no enforcement actions, warnings, or fines from the FSCA, and as of today, it holds a valid and active license. This collaboration exemplifies Eklavya’s dedication to upholding financial regulations in South Africa.
While the investigation sparked some temporary uncertainty among clients and business partners, the reality of no penalties or license restrictions serves as a testament to Eklavya’s compliance with regulatory standards. The company continued to operate normally during this period, providing services to both individual and institutional investors across South Africa.
Dustan Cornelissen, the Managing Director of Eklavya, shared insights on their position during this time: “We welcomed the review and answered every inquiry. We’re now asking for the same transparency in return.” His statement echoes a desire for mutual openness in the regulatory landscape—an expectation not only from the businesses being assessed but also from the regulatory authorities themselves.
Navigating Public Perception Challenges
The situation took a complicated turn when an initial statement regarding the investigation was briefly visible on the FSCA’s website, only to be removed shortly after. Despite this, third-party articles, including one from compliance platform Moonstone titled “FSCA Investigating Solis Markets Following Complaints from Investors,” remain available online without revisions or updates. This has perpetuated confusion about Eklavya’s current standing among clients and partners alike.
The absence of a public update to clarify the conclusion of the investigation has left unverified claims lingering in the air. This has undeniably hindered Eklavya’s efforts to restore public confidence, even though they maintain excellent standing with regulators. Consequently, the company has taken proactive steps, formally requesting updated public statements from the FSCA and associated media outlets to paint an accurate picture of their ongoing status and operations.
In light of this, Cornelissen aptly remarked, “This has been a reminder of how quickly incomplete information can take on a life of its own.” His words highlight the critical need for balanced communication, advocating that while companies should cooperate during inquiries, regulatory authorities must ensure they communicate clearly when investigations conclude without findings of wrongdoing.
In an effort to combat misinformation, Eklavya encourages media outlets and the public to verify the firm’s current regulatory standing through its FSCA registration (FSP 45583) when consuming information online. This simple yet effective step aims to minimize the impact of outdated or misleading data that may still be featured in digital search results.
Looking Ahead: Future Plans and Enhanced Practices
Eklavya Asset Managers remains steadfast in its commitment to fully complying with South African financial regulations. Licensed since 2013, the firm specializes in investment advice, wealth management, and trading services, and their SolisMarkets platform operates in full compliance with all requisite standards.
In response to the recent investigation, the company has strengthened its internal communication and compliance practices. These enhancements include broader disclosure protocols and improved oversight mechanisms. Such changes are designed not only to prevent future misunderstandings but also to foster a deeper trust relationship with clients and regulators alike. After all, trust is the cornerstone of any successful business, particularly in finance.
Looking forward, Eklavya plans to inaugurate a new regional office in Namibia by late 2025—a bold move that reflects their confidence in their business model despite the challenges faced. Furthermore, they anticipate expanding further into the Southern African Development Community (SADC) region by 2027, thereby bringing their financial services to an even wider audience across southern Africa.
At the heart of Eklavya’s mission is the aspiration to forge enduring client relationships built on trust and transparency. With their regulatory status firmly established and compliance practices fortified, the company is well-positioned to continue serving South African investors while preparing for exciting growth in the years ahead.
As a parting thought, it’s worth asking ourselves: in our fast-paced digital world, how can we ensure that the information we consume and share is accurate? Transparency, after all, is a two-way street.
#FeaturedbyJastineBeatriceYap
Edited By Ali Musa
Axadle Times international – Monitoring.
