Dynamic Wealth fights against curatorship

http://www.mg.co.za/article/2010-03-01-dynamic-wealth-fights-against-curatorship

Last week the Financial Services Board (FSB) spent three days in court arguing why certain businesses within wealth management company Dynamic Wealth should be put under curatorship. The details are not as spectacular as Fidentia or Ovation (other financial operators that have been put into curatorship) as it appears so far that no money has been misappropriated. What the FSB objects to, is the way that Dynamic Wealth has structured some of its funds.

Funds under question
According to court arguments that Dynamic Wealth had intentions of starting its own unit trust Nominee Company under the Collective Investment Scheme Control Act (CISCA) but its application was turned down. It has continued however to run" associations" which it describes as investment clubs but which in their structure resemble a unit trust fund.

These include the Dynamic Wealth Investment Association, Retirement Fund Association, Multi-manager Association, Kwanda Association, MFI association and SASEP Association. The FSB has repeatedly asked Dynamic Wealth to cease operating these funds which are effectively open to the public but are not regulated. It is important to note that Dynamic Wealth's white labelled funds which are registered on the Metropolitan platform are not under question.