Citadel Investment Services Proprietary Limited is an authorised financial services provider.

Citadel clients entrust their life savings to us and expect Citadel to have extensive internal controls in place to detect and deter possible fraud and theft. In order to offer our clients’ peace of mind, we have set out to answer a few frequently asked questions relating to some of Citadel’s safety measures and precautions.

Should Citadel go bust, what procedures are in place to safeguard a client’s financial assets?

All investments managed by Citadel Investment Services for or on behalf of clients do not form part of the Citadel balance sheet. These would, therefore, be protected from any creditors of Citadel, should Citadel go insolvent.  

Should a client make an investment into a collective investment scheme portfolio (often referred to as a unit trust), through a linked investment services provider (LISP) investment plan product, a nominee company will hold the investment on behalf of the client so as to separate the client’s assets from those of the LISP. These schemes also have a trustee/custodian, usually a bank in the case of a South African, which will hold the assets of the portfolio in trust for the benefit of the portfolio. Assets held in trust in this manner will be protected on insolvency of the collective investment scheme’s management company, trustee or custodian.

To provide further comfort to clients, Citadel maintains professional indemnity and fidelity insurance cover.

What internal controls does Citadel have in place to prevent or detect fraud?

All prospective employees are checked for any past criminal records and the qualifications of our advisors are verified. Employees are regularly trained and updated on the Citadel whistleblowing policy and how it protects them in the event they become aware of any irregularities.

Advisors are also required to complete a questionnaire at least three times a year. This enables the company to monitor whether their personal circumstances, which could give rise to potential risks of fraudulent behaviour, may have changed. Possible risks are identified and addressed by developing and monitoring various controls to mitigate them. The internal audit department also regularly reviews these controls, whilst making recommendations for further enhancements.

How does Citadel prevent any fraudulent withdrawal from a client’s investments?

Citadel has systems and procedures in place aimed at preventing fraudulent withdrawals. The Citadel finance department controls the releasing of all funds. Our finance department segregates these duties, meaning healthy checks and balances are in place, as different individuals are responsible for capturing, checking and effecting any withdrawal or payment. The finance department also has processes in place aimed at ensuring that only the client’s verified bank account details are used.

How does Citadel prevent cybercrime?

Citadel regularly tests and enhances its IT security systems. The security measures implemented are reviewed by independent cyber security specialists. A recent development was the launch of our client portal, My Secure Zone, aimed at enhancing confidential communication with clients. All clients are encouraged to register on My Secure Zone. For technical support contact 086 110 0628.

By Elsa de Kock, Head: Citadel Group Risk, Internal Audit and Compliance