The warning comes after the FSCA received allegations that Banxso has been contacting clients and advising them that it 'has been cleared', that its licence had been reinstated and that it may render financial services.

Listen to this article 6 min Listen to this article 6 min The licence of the trading platform Banxso remains withdrawn until further notice, the Financial Sector Conduct Authority (FSCA) has cautioned. It has brought the investigation of Banxso and preliminary findings to the attention of the Financial Intelligence Centre (FIC) and the Asset Forfeiture Unit (AFU) of the National Prosecuting Authority (NPA).

The warning comes after the FSCA received allegations that Banxso was contacting clients and advising them that it "has been cleared", that its licence had been reinstated and that it may render financial services. The FSCA says it has interviewed witnesses who have confirmed this and will investigate these allegations further.

The FSCA is also investigating statements from Banxso clients who maintain that Banxso is continuing to conduct financial services business, notwithstanding the withdrawal of its licence.

Indications are that consumers who have already lost money via the platform are being encouraged to commit more funds to Banxso to recover their trading losses.

The FSCA's investigation into the activities of Banxso and its officers is ongoing.

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