1. Presentation to Parliament INTRODUCTION
Financial Services Board
Gerry Anderson: Deputy Executive responsible for Intermediary Services
Dube Tshidi: Executive Officer: Financial Services Board

2. Definition of a Ponzi
A Ponzi scheme is a fraudulent “investment” operation that pays returns to its “investors” from their own money or the money paid by subsequent “investors” rather than from profit earned from the “investments”.
Intro the Team -

3. How “investors” are enticed
Ponzi schemes entice “investors” by:
offering higher returns than other genuine investments
the returns are earned within a short period and are abnormally high
“investors” are told that the more they bring new “investors” the higher their returns will be

4. Who are the likely victims
Family members
Communities
Pensioners
Greedy well-off individuals
Perpetrators: - very convincing and sly
- play on peoples’
emotions

5. Appearance of product(s)
Initially appears genuine (H Pretorius)
No transparency
Shrouded in secrecy / confidential agreements

6. Eradicating the schemes
Contravention of the Banks Act
Investigated by the South African Reserve Bank
Consumer awareness
Financial literacy at schools
Twin Peaks: - “one entry” requirement
- Fit and Proper
- Publication of reports
- Stiff penalties

7. THANK YOU. QUESTIONS?