The Financial Sector Conduct Authority has completed its investigation into crowdfarming platform Livestock Wealth, but has not yet published its official findings. The development follows a statement by the company asserting that the regulator found no evidence of unlawful conduct. According to Moneyweb, the platform announced the outcome ahead of the regulator’s own communication, raising questions about the timing and scope of the disclosure.
Livestock Wealth said the probe confirmed that investor funds had been fully accounted for and that its products did not breach financial services legislation. The regulator, however, has indicated that it will still release details of the investigation and an administrative penalty that has already been imposed. As reported by FSCA, the inquiry began in January 2024 after complaints from investors who were unable to withdraw expected profits from livestock, crop and land-based investment offerings.
The investigation followed a public warning in which the authority cautioned that Livestock Wealth may have been offering investment products without the appropriate authorisation under the Financial Advisory and Intermediary Services Act. The platform sells fractional exposure to cattle, macadamia trees and farmland, promising returns linked to agricultural production cycles. Several investors reported delayed or missed payments, with one savings group claiming it was owed nearly R140,000 after months of failed attempts to secure a payout.
Livestock Wealth has argued that its core business involves the sale of agricultural products rather than regulated financial instruments. It also pointed to previous correspondence with the regulator suggesting that registration as a financial services provider was not required. However, its subsidiary, Livestock Wealth Financial Services, has held an intermediary licence since 2021 to sell insurance products. This structure led to further scrutiny when the regulator accused the company of displaying the subsidiary’s licence number on its main website in a way that could imply broader regulatory approval.
The company acknowledged that the authority imposed a R50,000 administrative fine on both the business and its chief executive for this conduct. It said it chose not to appeal and paid the penalty in full, prioritising operational stability and reputational repair over further legal action. According to Reuters, regulatory enforcement across alternative investment platforms has intensified in South Africa as authorities seek to curb misleading marketing and protect retail investors drawn to high-yield agricultural and crypto-linked schemes.
Livestock Wealth said the prolonged investigation and adverse publicity had disrupted its operations and unsettled both farmers and investors. It maintained that the review of its records confirmed compliance with legislation and rejected suggestions that its model resembled a Ponzi scheme. The company reported that it currently manages more than R100 million in assets linked to cattle, macadamia orchards and citrus-focused farmland.
The FSCA has confirmed that it will still publish a formal statement outlining the outcome of the investigation and the basis for the administrative sanction. Until then, the case highlights the regulatory tension between innovative farming-based investment models and traditional financial services law, as well as the reputational risks faced by platforms operating in this grey area while seeking to expand access to agricultural investment.