Business Practices Committee Report 79Metro Financial Services Ltd15. Recommendation |
The Committee informs the Minister that, in its opinion, the business practices of Metro Cash Loans Ltd (99/06083106), Christo Holsthauzen (ID 701002 5254 089) and Zane Beswick, (ID 670920 5068 083) constitute unfair business practices. There are no grounds justifying the practices in the public interest. It is accordingly recommended that the Minister under section 12(1)(b) and (c) of the Consumer Affairs (Unfair Business Practices) Act (Act No. 71 of 1988) -
| i) | declares unlawful the business practice whereby - |
| a) | Metro Cash Loans Ltd and/or Christo Holsthauzen and/or Zane Beswick, in the course of business, directly or indirectly invite any consumer (investor) to make any type of investment in any entity, unless the investor signs a document which clearly states that the investor received audited financial statements of that entity, as at a date not exceeding three months prior to the investor making the investment. |
| b) | Christo Holsthauzen, in the course of business, accept any investment from any consumer in any entity in his personal name and/or any investment in any entity is credited to any of his personal accounts held at any financial institution. |
| ii) | directs Metro Cash Loans Ltd, Christo Holsthauzen and Zane Beswick to refrain from applying the unfair business practice. |
"Audited financial statements" means a balance sheet, an income statement and a cash flow statement verified by a chartered accountant who is registered with the Public Accountants and Auditors Board in terms of the Public Accountants’ and Auditors’ Act, No 80 of 1991.
Prof T A Woker
Vice-Chairperson: Consumers Affairs Committee
23 June 2000