Veracity Markets was banned by the FSCA from acting as a Juristic representative to Nirvesh Financial Services (who are an authorized FSP) and who had appointed them to act as their rep.
The reason Veracity Markets was banned from acting as a representative to Nirvesh Financial Services, was because they were acting as an Over-the-counter Derivative Provider (ODP) without holding an ODP license from the FSCA. In other words, Veracity Markets was trading against its clients instead of passing the trades to a third-party liquidity provider of some sort.
When someone complained to the FSCA about the illegal actions of Veracity Markets, they launched an investigation and in the end Veracity Markets was fined a penalty of R10 Million, while two of its directors were fined R1 million each.
The FSCA also imposed a penalty of R1 million on Nirvesh Financial Services (who appointed Veracity Markets as their representative) and another penalty of R100,000 each on two Key Individuals of Nirvesh.
