You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

SA currency trader to oppose liquidation bid

Regulator wants JP Markets liquidated for allegedly operating an unlicensed over-the-counter derivatives business.
Image: Moneyweb
South African currency-trading platform JP Markets plans to oppose a court application by the nation’s financial-services regulator to shut it down.The Financial Sector Conduct Authority has said it wants the firm liquidated for operating an unlicensed over-the-counter derivatives business and in June provisionally suspended its financial-services provider’s license. Its bank accounts were frozen earlier this month.

The company was working in “good faith” with the FSCA to correct the issue when its license was pulled, Darren Hanekom, a lawyer for JP Markets, said by email. It had made “full and frank disclosures” on its business model to the FSCA as recently as September, he said.

While JP Markets paid an application fee for the derivatives license, it had not made an application, the Pretoria-based regulator said by email. The FSCA was not aware that JP Markets was issuing contracts for difference until this was revealed by a witness during the regulator’s investigation, which started after it received complaints about the company, it said.

JP Markets, founded in 2016 by 33-year-old University of Cape Town graduate Justin Paulsen, has 320 000 clients, about 20 000 to 40 000 of which are active, Hanekom said. It paid out over R1 billion in customer withdrawals in the three months before its accounts were frozen, and receives about R300 million in client deposits a month, he said.

The firm also faces an online petition signed by more than 3 200 people amid allegations it refused to make refunds.

The petition was created under a pseudonym by someone who wasn’t a JP Markets client and relate to technical breaks, Hanekom said. JP Markets has taken steps to limit interruptions, he said.

The liquidation application will be heard on July 31.

© 2020 Bloomberg L.P.

COMMENTS   4

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in to comment.

SIGN IN SIGN UP

”One owes respect to the living: To the dead one owes only the truth”
Voltaire.

Derivative trading can mitigate portfolio risk, but institutions and smaller customers that are highly leveraged can suffer huge losses if their positions move against them, as the world learned during the financial crisis that roiled markets in 2008.

Something is clearly wrong if you claim to have 320k clients and only 20 k were still trading actively hence you lost 93,75 % of your clients!
The FSCA won’t have any choice but to make an example of them – the financial markets just cannot afford to have cowboys like this ‘’ making the market’’, period!

FSP Nr 46855
FSP Name JP MARKETS SA (PTY) LTD
Date Application Received by FSCA or RB 20/04/2016
Status Provisionally Suspended
Date Status Updated 19/06/2020

Maybe you can explain what ”Date Status Updated 19/06/2020” means?

I got out of one of these Traders just in time. Lost my Profits but got my Original Investment back thanks to FSCA Regulator.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles: Advanced Search
Click a Company: