Responsible Investing

Introduction

As financial markets grow in prominence across South Africa, Finovanta emphasizes the importance of responsible investing. Our aim is to guide users on making informed financial decisions, recognizing signs of potential overexposure, and knowing where to seek professional support when needed.

In compliance with the Financial Sector Conduct Authority (FSCA) and other relevant South African regulatory bodies, Finovanta promotes practices that ensure investing remains a deliberate and controlled activity, viewed as a means of long-term financial planning rather than a quick solution.

Protection of Minors

Access to investment platforms by individuals under 18 years of age is strictly prohibited under South African law. We encourage parents and guardians to utilize parental control tools and financial education resources, such as those provided by FSCA, to safeguard young individuals.

Principles of Responsible Investing

• Invest with a clear understanding of your financial goals, not as a reaction to market trends.
• Establish a budget and avoid allocating more capital than you can afford to risk.
• Treat potential losses as part of the learning process in financial markets.
• Set time limits for market analysis to maintain a balanced lifestyle.
• Avoid using credit or loans to fund investments beyond your means.
• Ensure investing does not disrupt family, work, or personal responsibilities.
• Resist the urge to overcompensate for losses with hasty decisions.
• Monitor your emotional response to market changes and seek advice if needed.

Self-Assessment: Are You in Control?

Reflect on the following questions with a "Yes" or "No" answer:

• Have you missed work or personal commitments due to excessive market monitoring?
• Has investing negatively impacted your relationships or reputation?
• Do you feel regret or stress after making investment decisions?
• Have you used investment funds to cover essential expenses?
• Have you attempted to recover losses with additional investments?
• Have you exhausted your savings on market activities?
• Have you borrowed money to continue investing?
• Have you neglected bills or necessities due to investing?
• Do you use investing as a way to escape personal challenges?
• Have you experienced sleep disturbances over investment concerns?
• Have you considered unethical actions to sustain your investments?
• Have you felt despair over financial market outcomes?

If you answered "Yes" to any of these, consider consulting a financial advisor or support service.

The South African Responsible Investment (SARI) initiative offers free resources and counseling for individuals experiencing challenges with investment-related decisions. Visit Responsible Investor for more information.