The Office of the Registrar at the South African Reserve Bank (SARB) has carried out its mandate to ensure the compliance of Sharemax (Pty) Limited and its property syndication companies with the Banks Act. The SARB has also withdrawn the directives issued to Sharemax and its property syndication companies to repay investors.
This follows the approval of the schemes of arrangement by the High Court on 20 January 2012 and the subsequent registration of Sharemax and the property syndication companies with the Companies and Intellectual Property Commission on 24 January 2012.
Sharemax and its syndication companies were investigated by the Registrar’s office and it was concluded that the funding models used by the entities were in contravention of the Bank’s Act. Directives were issued to Sharemax for the repayment of funds to individual investors in September 2011.
The SARB appointed independent fund managers to take control of the assets of Sharemax and its property syndication companies. Following the High Court decision, these fund managers have been relieved of their duties.
The SARB inspects various schemes of a similar nature on an annual basis and actions taken by the Registrar’s Office are dependent on the merits and demerits of each case.
Refer to the fact sheet for further details.
Enquiries:
Hlengani Mathebula
Head: Strategy and Communications
Tel: 012 313 4210
Cell: 082 448 9219
Withdrawal of directives in respect of property syndication companies promoted by Sharemax Investments (Pty) Limited.
