SA watchdog warns against Chinese scheme that uses glitzy events to target locals
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SA’s financial watchdog has warned the public against doing business with QZ Asset Management, a Chinese multi-level marketing scheme that hosted lavish investment drives at upmarket Johannesburg and Durban hotels.
The Financial Sector Conduct Authority (FSCA) said that it had received numerous complaints from the group’s clients that they had been unable to withdraw funds after QZ Asset Management’s website went offline.
“The FSCA can confirm that QZ Asset Management is not authorised or registered under any legislation administered by the FSCA or Prudential Authority,” it said.
The watchdog added it had launched an investigation into the scheme.
Over 3 500 people have also signed an online petition criticising the group and its directors for “maliciously defrauding their investors”.
Social media posts show QZ Asset Management holding events where local promoters talked up the scheme, which claimed to be able to quadruple investments in a week.
“I am so blessed to be among leaders who are leading with transparency and integrity. They are not being shaken by any of the negative news […] going around social media,” states a promoter in a slick video published 10 days ago.
Content retrieved from: https://www.news24.com/fin24/companies/sa-watchdog-warns-against-chinese-scheme-that-uses-glitzy-events-to-target-locals-20230601.
