FSC offers option to Cash Plus

FSC offers option to Cash Plus

Monday, March 10, 2008

The Financial Services Commission (FSC) says it will ease its cease and desist order on alternative investment club Cash Plus Limited (CPL) to allow the company to settle its debt to its investors.

However, the regulator made clear it would only grant the variation of the order if Cash Plus provided it with:
. The total number of investors and the aggregate balances due to all investors;

. The methodology by which Cash Plus will facilitate the settlement of the total indebtedness due to investors and the closing of all investor accounts; and

. The source of funds for making payments to the investors.
The FSC made the announcement in a public notice advertisement in the newspapers yesterday in which it also stressed that the cease and desist order was still in effect.

Cash Plus was served with the order by the FSC on December 28, 2007, preventing the company from conducting what the FSC insisted was securities business with members of the public.

The order effectively prohibits Cash Plus from taking new funds and making payments to investors until the club obtains the required licence.

Last year, the FSC declared that Cash Plus breached Section 26 of the Securities Act since it was offering securities to the public without being registered by the Commission. It further stated that failure to stop these activities is an offence under Section 68(7) of the Act and is punishable upon conviction by a fine or imprisonment or both.

Cash Plus then took the FSC to court on the grounds that its operations did not amount to securities trading. But before the legal battle gained leverage the company announced that it would seek to register with the FSC.

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