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Cape Town – A crowdfunding investment company said it is currently applying for a Financial Services Board (FSB) licence, after the regulatory body issued a warning on Thursday that it does not yet hold one.
Wealth Migrate said in a statement on Friday that it views the South African market as a great opportunity and “will inform (the public) as soon as we receive our license”.
On Thursday, the FSB said it noted claims that Wealth Migrate held an FSB licence. “Wealth Migrate is said to be involved in so called crowdfunding, … (which) is an activity that falls outside of the regulatory net of the FSB.”
“The FSB would like to clarify that it does not have any record of the entity, and has not issued a licence to Wealth Migrate,” the FSB said. “The company is also not a juristic representative of an authorised financial services provider.”
Wealth Migrate explained that it is a global company that operates in various markets.
“Wealth Migrate does not currently have a SA FSB license, however, we are in the process of applying,” it said.
Regarding financial compliance, Wealth Migrate says on its website that the company "is building compliance in the US, UK, Australia, Singapore, Malaysia, Hong Kong and South Africa".
"The most recognised authority on crowdfunding compliance, Crowdsourcing.org is a regular consultant to Wealth Migrate and The Global Wealth Group. Crowdfunding is legal, easy to grasp, and its global recognition for compliance is growing."
Wealth Migrate founder and CEO Scott Picken told Fin24 last week ahead of his Wealth Movement conference in Johannesburg that he was kick-starting a wealth movement based on crowdfunding technology.
“Crowdfunding is the future,” said Picken. “Where technology comes into an industry, it revolutionises it and cuts out the middle man. The way people (currently) invest is archaic.
“We are not making you rich,” he said. “Everyone must take responsibility for their own wealth. We are simply surrounding you with self-minded people to help you take the first steps towards your own wealth journey.”
Picken told FinWeek in its July edition that he aims to ride the wave of expanding access to the wealth-creating asset of property through the platform of crowdfunding.
“Property investment is not that complicated,” he said. “You buy a decent property in a decent area where you have demand or can add value.”
Together with property tycoon Hennie Bezuidenhoudt, he formed Wealth Migrate to help bring people together to use their collective buying power to invest globally in quality assets with quality partners.
In total, Picken and his partners have concluded over 2 300 deals in the past 11 years helping South Africans invest internationally. “Collectively, we have invested $1.34bn on five continents for clients over three decades.”
Picken said Wealth Migrate’s mission is to empower one billion people by 2020 through access to property.
