Cape Town – The Financial Services Board (FSB) said on Thursday that it had been helping two authorities with investigations into alleged Belvedere Ponzi scam mastermind Cobus Kellermann.
“We have been liaising and helping the two authorities [Mauritian Financial Services Commission and the Guernsey Financial Commission] with the investigations [into Kellermann and his associated entities and persons],” the FSB said in a statement.
“The FSB has also engaged Mr Kellermann, and will take regulatory action it deems necessary at the conclusion of these investigations.
“Such regulatory action could include the withdrawal of the licenses of the various entities where he is currently appointed as a key individual, director and representative.
“In addition to any criminal prosecution, Mr Kellermann could also be debarred from the financial services industry.”
FSB’s investigation in 2009
On Tuesday, Fin24 quoted BizNews publisher Alec Hogg – who is leading the coverage of the unfolding story – saying that a financial adviser said the FSB had been informed about the Belvedere Ponzi scheme in 2009.
The FSB responded to this allegation, saying: “There are also media reports suggesting that the FSB was advised of Mr Kellermann’s activities as early as 2009. The FSB denies this as the information supplied in 2009 made no mention of Mr Kellermann or his involvement in an offshore Ponzi scheme.”
What Kellermann is linked to
The FSB confirmed that Kellermann was currently linked to five authorised financial services providers in various capacities as a key individual, director and representative.
These financial services providers were RSA Multi Asset Management, Governation Investments SA, Pensionation Investments SA, Multivest Financial Planning, and Contego Asset Management.
“In terms of Clarus CIS funds, the assets of investors are safeguarded by the requirements of Collective Investment Schemes Control Act (Act 45 of 2002), in that the assets are segregated from that of the CIS manager and asset manager and are held and controlled by the scheme’s trustee which is an entity independent from the manager and asset manager.”
UPDATE:
Since publication of the article above, several regulatory authorities have conducted investigations into the allegations of fraud and of a possible Ponzi scheme and have found as follows:
The Guernsey Financial Services Commission having reviewed their Enforcement Division’s report and accompanying evidence concluded that no further action will be taken and that their proceedings are at an end.
The US based Chartered Financial Analyst Institute stated, after reviewing the information available to them, that their Professional Conduct program decided to close its investigation and to take no disciplinary action, reserving the right to reopen the matter if new information comes to hand.
The Financial Sector Conduct Authority found no evidence of any breaches of the relevant South African financial sector laws.