South Africa’s FSCA has issued a Reward of Legacy warning. The warning follows enquiries from the South African public.
As per the FSCA’s March twenty third warning, which adopted enquiries from the general public, the regulator confirms Reward of Legacy isn’t committing securities fraud.
This may be a violation of South Africa’s Monetary Advisory and Middleman Companies.
Relatively, the FSCA has punted its findings to “different regulators in South Africa”. We’re assuming this implies the Nationwide Shopper Fee, who regulate the Shopper Safety Act (CPA).
It’s below the Shopper Safety Act that pyramid schemes are unlawful in South Africa.
One other risk is the South African Reserve Financial institution, who examine “unlawful deposit taking” in South Africa. A gifting pyramid scheme can fall below unlawful deposit taking.
Being an MLM gifting scheme, it’s unsurprising the FSCA concluded Reward of Legacy wasn’t committing securities fraud.
MLM gifting schemes see associates pay a charge, which qualifies them to obtain gifting fee from subsequent members.
Whereas MLM Ponzi schemes have a pyramid element, gifting schemes are lacking the funding standards of a securities providing.
Strictly talking one might see a matrix-based gifting scheme as an funding, with a return paid out as soon as a matrix is crammed. Regulators nevertheless sometimes differentiate between the 2.
For instance, within the US the SEC handles securities fraud. Pyramid schemes are regulated by the FTC.
Reward of Legacy launched in late 2021 as a $100 a pop gifting scheme. The rip-off is run by South African residents Chris Hattingh and Candice Donadel.
Again in February Hattingh claimed the FSCA rubber-stamped Reward of Legacy after a 3 hour assembly. The FSCA’s warning and referral to a extra applicable regulator suggests in any other case.
At time of publication Reward of Legacy’s web site was down for upkeep.
Because of the fast and thrilling progress in Reward of Legacy during the last quick whereas, our group platform wants some TLC as it’s not acting at its optimum capability.
We worth your consolation and belief within the system, and it’s subsequently crucial that we urgently take measures to improve and improve the efficiency and effectivity of GL in addition to sustaining your consumer expertise.
The queueing system was a brief resolution to help with the load. Now we have no alternative however to briefly take the system offline to take care of its integrity and protect your consumer expertise.
We advocate that you simply hit the pause button on gifting throughout this time.
We thanks in your help and we are going to see you again on-line actual quickly.
Though it originated in South Africa, Reward of Legacy recruitment has since unfold to Russia (60%), Germany (9%) and Israel (7%). That is based mostly on web site visitors evaluation by Alexa.
The Central Financial institution of Russia issued a Reward of Legacy pyramid fraud warning final month.