*This content is brought to you by Brenthurst Wealth
By Marise Smit*
As a result of the unfavourable market conditions over the previous several years, some investors have resorted to extreme methods in an attempt to regain their losses. And certainly, growth possibilities are something that should be sought after for all intents and purposes, but at what cost?
Unfortunately, this panic-fuelled frenzy is exactly what unscrupulous operators and criminal syndicates hope to feed off. According to a recent Financial Intelligence Centre (FIC) report, the authorities had recovered more than R5 billion in criminal proceeds, including more than R41.6 million in penalties.
And you only need to glance at the Financial Sector Conduct Authority’s (FSCA) news section to see the regularity with which it publishes warning about dubious practices by firms providing financial and investment services.
The scale of the problem is staggering, and one that cannot be ignored in these times where criminals are becoming smarter and slicker. Even the most vigilant investor can be caught out by sophisticated schemes designed to part you from your money.
If you conduct your investigation on the companies offering you “investment possibilities” thoroughly, you can avoid this type of situation. Here are four red flags to pay attention to whenever dealing with any company that claims it can assist you with your finances or investments.
Read also: Why your investments can grow in 2023
1. Are they a registered FSP?
Any company wanting to provide financial advice or services must be registered with the FSCA, which issues a licence for these companies to offer services to consumers. The licences cover businesses from banks, to insurers, to fund managers, financial service providers (FSP) and the like.
Because any credible company will be registered with the FSCA, this is where your 4-step checking process should start. You can check the credentials of any authorised FSP by entering the FSP number they advertise, or the company name or the ID number of the person you’re dealing with.
If the company fails this initial test, then you definitely shouldn’t be doing business with them.
If their details are confirmed on the FSCA database, then you’re one step closer to feeling confident in the company or the deal you’re considering. You can also search the FSCA’s ‘Warnings and alerts’ page to see if this ‘opportunity’ or the company are mentioned as being suspicious.
Brenthurst Wealth is a registered FSP, which is confirmed in all communication that we send out. We’ve had instances in the past of criminals posing as Brenthurst advisors offering unbelievable investment opportunities.
So, even if the message looks real, but you have a bad feeling about it, please contact us to make sure it’s legitimate. If we hear about impersonations or other scams, we’ll let all of our clients know right away, but if you’re not sure, you can always ask us directly.
2. Are they pressurising you to make a decision?
Although not illegal, high-pressure tactics are often used by scammers to get you to hit that ‘pay now’ button before you get to think it through properly. The need for speed is often based on a ‘once-on-a-lifetime opportunity’ that’s too good to miss, and which will help you recoup market losses.
This fear of missing out is a key tactic that you should try to avoid at all costs. Sure, emotions can run high and the promise of getting back some of your losses is very appealing. But rather than jumping in with both feet, take a moment to make a proper assessment.
Ask yourself why there’s such pressure to get a deal done, and who’s offering this great deal? Was it recommended to you by someone you know or did you find it through advertising? Have you done your first check on the FSCA website to see if the company is registered and reputable?
It’s not typical for a trustworthy advisor to try to pressure you into making a quick decision. Instead, they should carefully assess your current financial standing and long-term objectives before making any recommendations.
3. How transparent are they on fees and services?
You shouldn’t jump into an investment without first understanding it fully. Whether you’re making a one-time investment or working with a financial advisor over the long haul, you should always ask to receive a detailed breakdown of all the fees and costs.
Ask for clarification if you need it so that you aren’t left wondering when and how much you’re being charged.
Transparency applies to all investment opportunities and funds. A prospectus, financial statements, or fund fact sheet should all be available for you to review and use to analyse the investment. In the event that you are being given the run-around or the figures you have been given do not appear legitimate and cannot be explained, then it’s best to walk away.
4. Do they have a credible track record
New investment firms and opportunities are popping up all the time, so it’s true that some haven’t been around for decades and therefore don’t have a track record to point to.
If this is the case, then research the personal track records of the people involved and look at their credentials and qualifications. Verify that the advisor’s qualifications are consistent with what are required in the industry. You can rest easier if they have a long track record of success in a reputable organisation and have the right qualifications. But, if the person’s past is cloudy or plagued with past failures then it’s generally preferable to pass on the possibility.
Putting your retirement funds in the hands of an advisor or investing firm is a huge decision, and you need to be completely confident in their honesty and reliability. You can’t achieve the kind of long-term money accumulation necessary for a comfortable retirement without a partnership founded on trust.
Don’t get sucked into scams, no matter how good the deal seems. Check them out and do your research. And if you are still unsure, consult your advisor (or seek out a new one) who can give you proper advice.
- Marise Smit, CFP®, is a financial advisor at Brenthurst Wealth Pretoria.
Megan joined the Brenthurst Wealth team in March 2026 as an Administrative and Fiduciary Services Assistant at our Val de Vie Office in the Western Cape. Prior to joining Brenthurst, Megan gained three years of experience in the retail sector, where she developed management and client service skills.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
ADMITTED ATTORNEY | FINANCIAL PLANNER & HEAD OF BRENTHURST FOURWAYS
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
