A chartered accountant has lost an appeal to overturn a seven-year debarment imposed by the Financial Sector Conduct Authority, after authorities found he helped market an unauthorised investment scheme that drew approximately R70 million from between 250 and 300 investors, iol.co.za reported.
Tribunal Upholds Debarment over Unauthorized Fund
- Junaid Ebrahim Salejee failed to overturn his seven-year debarment by the Financial Services Tribunal for marketing an unauthorised fund.
- The scheme, operated by Acqumen Fund Limited, raised approximately R70 million while promising a 14% annual return between September 2015 and November 2023.
- The tribunal ruled that Salejee’s actions exceeded basic administrative duties, encompassing client meetings, prospectus distribution, and direct product explanations.
Scheme Promises Returns While Collecting Millions
Operating from September 2015 through November 2023, Acqumen Fund invited members of the public to subscribe for ordinary shares linked to debentures secured against immovable property, according to iol.co.za. The scheme promised projected annual returns of approximately 14%, split evenly as a 7% cash dividend and 7% capital growth, with a minimum investment threshold of R10,000.
The tribunal noted that aggregate capital flows through the relevant bank accounts during the period of the alleged contraventions reached approximately R255 million. Investigators determined that neither Acqumen Fund nor its related entities held authorisation to operate as financial services providers.
| Scheme Metric | Reported Figure |
|---|---|
| Total Capital Raised | Approximately R70 million |
| Total Bank Account Flows | Approximately R255 million |
| Participating Investors | 250 to 300 investors |
| Targeted Annual Return | Approximately 14% (7% cash dividend, 7% capital growth) |
| Minimum Investment | R10,000 |
Tribunal Findings on Professional Conduct and Role
Salejee challenged the regulatory findings by maintaining that his involvement was strictly administrative and informational, performed during his employment without any financial benefit beyond his salary, and that marketing was handled by sales representatives like Ridwaan Adam and director Mahomed Ebrahim Amod.
However, the Financial Services Tribunal dismissed the application for reconsideration. The tribunal established that Salejee attended investor meetings, distributed prospectuses, explained the investment product, and served as a bank account signatory. The tribunal noted he encouraged family members to invest and assured participants that the vehicle was safe because his own family had committed capital to the fund.
The tribunal classified Salejee’s conduct as deliberate or reckless, specifically citing his professional standing as a chartered accountant and his prior involvement in an unsuccessful 2016 regulatory application.
Disclaimer: The Information Provided in This Article Is for E
Records examined by the tribunal showed that Acqumen Management Services submitted a licensing application in 2016, which the then Financial Services Board advised in March 2017 should instead be filed under Acqumen Fund’s name. Although that application was withdrawn with an undertaking to restructure, no subsequent application was submitted, yet the fund continued operating under the same model for approximately six-and-a-half years.
The tribunal ultimately affirmed the seven-year prohibition as reasonable given the circumstances.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
