Crunch time for property scheme:
http://www.citypress.co.za/SouthAfrica/News/Crunch-time-for-property-scheme-20100725
The Reserve Bank is set to decide whether it will force South Africa’s largest property syndication scheme to repay billions of rands to thousands of investors.
Financial experts feared that investors – many of them pensioners – were in danger of losing their money if the Reserve Bank cracked down.
The Reserve Bank recently found that over a period of six years, Sharemax Investments received more than R5 billion from 40 000 investors in an illegal manner. It said Sharemax operated as a bank without being registered as one.
Sharemax, the largest syndication scheme in South Africa by a long margin, has been operating for more than a decade and canvasses investments for property developments.
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