FSCA files urgent application to liquidate JP Markets, all accounts frozen

JP Markets' CEO, Justin Paulsen,
JP Markets' CEO, Justin Paulsen, image: Provided in a statement

In the media release: The Financial Sector Conduct Authority (FSCA) has filed an urgent application with the High Court to liquidate JP Markets (Pty) Limited and would like to inform the public, particularly the clients of JP Markets, that the bank accounts of JP Markets have been frozen.

The regulator further explained that ‘JP Markets will no longer be able to operate on these accounts and they will remain frozen for a specific duration in terms of legislative parameters.’

This report follows the provisional suspension of the licence of JP Markets which was previously reported by FSCA on 19 June 2020, ‘ subsequent to a reasonable belief that substantial prejudice to clients or the general public may occur if they continue rendering financial services. ‘

In the statement, the regulator explains that “The Authority has taken these steps as it believes that JP Markets has contravened financial sector laws, including but not limited to running an unlicensed over-the-counter derivatives provider (ODP) business.”

”All ODP providers need to be licenced by the FSCA. The investigation into the activities of JP Markets is currently on-going.” FSCA concluded.

FSCA continues to warn the public that ‘ derivatives-platform trading is a high-risk investment option, only suitable for investors with the required knowledge, skills and experience. ‘

‘The public should carefully consider whether trading in such financial instruments are suitable for them. ‘

‘The FSCA again reminds consumers who wish to conduct financial services with an institution or person to check beforehand with the FSCA on either the toll-free number (0800 110 443) or on the website www.fsca.co.za as to whether or not such institution or person is authorised to render financial services.’

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