The Monetary Providers Fee (FSCA) in South Africa has issued a Gift of Legacy alert. The finding of a hazard was announced after a public investigation in South Africa.
According to the FSCA’s March 23 discovery, which came in response to public questions, Present of Legacy is not engaging in securities fraud.
This is a breach of the law. South Africa’s Financial Advisory and Middleman Providers Act (FAISA).
In the alternative, the FSCA has delayed its decisions to “other regulators in South Africa.” Given that the Shopper Safety Act is their jurisdiction, the Nationwide Shopper Fee is most likely being mentioned (CPA).
According to the Shopper Safety Act, pyramid schemes are illegal in South Africa. The Reserve Financial Institution of South Africa is a third option, as it investigates “unlawful deposit taking” in the country. A gifting pyramid rip-off, for example, could be considered illegal deposit taking…
Given that Gift of Legacy is an MLM gifting scam, the FSCA’s judgment that it did not conduct securities fraud is understandable.
Associates who participate in MLM giving packages pay a fee in exchange for the right to collect gifting money from later donors.
Unlike MLM Ponzi schemes, gifting schemes do not meet the financial requirements of a security provider. Matrix-based gifting systems can be viewed as funding that pays out once all of the matrices have been filled.
Regulators, on the other hand, prefer to keep the two distinct. For example, the Securities and Exchange Commission (SEC) in the United States, for example, provides assistance with securities fraud.
The Federal Trade Commission (FTC) regulates and punishes those who engage in pyramid schemes. In late 2021, a $100-per-gifting program called Gift of Legacy will be launched.
Chris and his associates are the perpetrators of the prank.
Hattingh and Donadel are both South African citizens. Hattingh received the FSCA’s seal of approval for the Present of Legacy after a three-hour assembly in February.
FSCA’s The alternative is admonition and referral to a more appropriate authority. The Gift of Legacy’s website was down for maintenance at the time of publishing. “As a result of Gift of Legacy’s recent and exciting expansion, our community platform is in need of some TLC and isn’t performing to its full potential. As a result, it’s critical that we move quickly to replace GL’s efficiency as well as its customer competence, so that you may continue to have a positive experience with it. The queueing mechanism was only intended to be a temporary solution. We have no choice but to take it offline for a short period of time to protect the system’s integrity and your customer experience. It is preferable to avoid any gifting during this time period. We appreciate your assistance and hope to see you again soon.”
Legacy recruiting started in South Africa, but it has since extended to Russia (60 percent of the population), Germany (9% of the population), and Israel (2% of the population). This is based on Alexa’s analysis of visitors to a variety of websites.
Earlier this month, the Russian central bank issued a warning about the Present of Legacy pyramid scheme.