Speaker, in the current economic conditions investors are often desperate to protect their assets and to increase their return on investment. Although every investment brings with it a particular level of risk, some risk is acceptable and some is not.
An acceptable risk exists where the investor understands the nature of the investment and also understands the nature of the return and whether it is guaranteed or not. Legislation was enacted to ensure that financial advisers provide the necessary information to investors, and they can be held to account if they fail to properly advise their clients. The Financial Services Board is also mandated to take action against financial service providers who do not comply with their obligations.
Financial predators are, however, operating in South Africa. They are not properly accredited; they mislead potential investors and leave destitution and broken lives in their wake. When investors fall victim to these predators, the matter is often extremely complex and complicated and requires extensive investigation. The victims often do not have any financial resources to pursue the matter, precisely because their money has been stolen.
The DA believes that vulnerable investors must be protected and that the Financial Services Board can do this by establishing a rapid response unit that responds quickly and decisively when matters such as these arise. The South African public needs to know that financial predators who lead them into financial ruin will be acted against swiftly and strongly and prevented from perpetuating their crimes over and over again. Thank you.