The Johannesburg Stock Exchange (JSE) has released an online tool designed to help people confirm if the stockbrokers and financial service providers they deal with are real and credible. The tool, called Verify a Broker, supports safer investment choices by ensuring one deals with legitimate professionals and companies.
Stockbrokers are professionals who provide support with the buying and selling of stocks on markets like the JSE. They can be essential for anyone looking to invest in shares because they have the expertise and tools to carry out trades effectively. Alongside stockbrokers, there are other types of Financial Service Providers (FSPs) who offer a variety of financial services. These include financial advisors, fund managers, and insurance brokers, each playing a distinct role in helping manage investments.
Verify a Broker confirms the authenticity of these various financial experts, ensuring they are legitimate.
The tool works by providing a consolidated view of the JSE’s stockbroker database from the database managed by the Financial Sector Conduct Authority (FSCA), the regulatory body that oversees financial professionals and organisations in South Africa. Every financial services provider, including stockbrokers, must be registered with the FSCA to operate legally.
By searching using the organisations’ name or financial services provider number against this database, the tool ensures that the financial professionals you as an investor are considering are officially recognised and meet all regulatory standards.
“The tool is easy to use and helps everyone – from grandparents investing for their grandchildren to young professionals inspired by finance influencers on social media – to make sure their financial professionals are credible,” said Nongcali Rubushe, head of retail and business enablement at the JSE.
“We want South Africans to feel confident and informed when making investment decisions with their hard-earned money. This tool makes the investment process more transparent and safer.
“Protecting investors and entrenching financial literacy is key for us at the JSE. As the largest exchange in Africa, we are acutely aware of the role we play in uplifting our society and equipping people from all walks of life with the tools and information that enables them to protect their financial interests, make informed decisions, and pursue their investment goals with confidence.”
The JSE or any of its representatives will never call to get personal information or ask to invest money over the phone. The only way to trade directly on the JSE, is through an authorised stockbroker. A list of stockbrokers can be found here.
If you encounter a potential scam, report it immediately by emailing info@jse.co.za.
* To use the Verify a Broker tool, visit the website here.