The Financial Sector Conduct Authority of South Africa is investigating allegations of misappropriation of investments and incorrect financial advice given by Stringfellow Financial Services (Pty) Ltd and its main director, Thomas Stringfellow.

As a result, the regulator has provisionally withdrawn Stringfellow Financial Services’ licence. Thomas Stringfellow allegedly raised funds from his clients to invest in the women’s sportswear business, Leigh LJ (Pty) Ltd (which trades as LornaJane), where he serves as its managing director. This investment scheme offered his clients a return of 14% per annum.

Some clients opted to receive monthly returns and did receive their money until the scheme collapsed in June. Other clients opted not to receive monthly returns but to invest the money for a specific period with the option to withdraw the money and interest at the end of the period. Stringfellow was arrested a fortnight ago and has been charged with one count of fraud by the police. Since he is a representative and key individual of an authorised FSP, the FSCA has decided to provisionally withdraw the licence of Stringfellow Financial Services (FSP number 23376), pending the outcome of the investigation. It intends to keep the public updated.

The Twin Peaks model for financial sector regulation was proposed as a means to reform the regulatory and supervisory system which obtained cabinet approval in June 2011. On 21 August 2017 the resulting Financial Sector Regulation (FSR) Act was signed into law.
 
The FSR Act gave effect to three important changes to the regulation of South Africa's financial sector. First, it gave the South African Reserve Bank an explicit mandate to maintain and enhance financial stability. Second, it created a prudential regulator, the Prudential Authority, which is housed in the South African Reserve Bank. Third, the Act established the Financial Sector Conduct Authority as a market conduct regulator and located it outside the Reserve Bank.