Legal and Regulatory Information

What is the role of the FSCA?

 

The Financial Sector Conduct Authority (FSCA), previously known as the Financial Services Board (FSB), is the market conduct regulator of financial institutions in South Africa.

How does the FSCA implement its role as a regulator?

 

By enhancing and supporting the efficiency and integrity of the financial system and by protecting financial customers by promoting their fair treatment by financial institutions.

It also provides financial customers with financial education and promotes financial literacy and financial capability.

Which financial institutions are regulated by the FSCA?

 

The FSCA website indicates the following: “Financial institutions that provide financial products and financial services, financial institutions that are licensed in terms of a financial sector law, including banks, insurers, retirement funds, and administrators, and market infrastructures.”

FAIS Act

 

The Financial Advisory and Intermediary Services (FAIS) Act is administered by the FSCA. The purpose of the FAIS Act is to protect consumers in dealing with FSPs, by regulating the advice-giving and selling activities of FSPs.

The Act also ensures that consumers are provided with sufficient information about the financial products they use and about the people and institutions that sell these financial products.

FSP registration and FSP license

 

In order to operate as an authorised FSP in South Africa, a business entity or individual must be registered with the FSCA and issued with a FAIS license, more commonly known as an FSP license.

Before applying for an FSP license, certain FAIS requirements such as education and experience are to be met. A number of documents are also required.

Applying for an FSP license can be arduous. However, there are businesses that can assist, at a certain cost, with the registration of an FSP.

Complaints about an FSP

 

Want to complain about an FSP? The Financial Advisory and Intermediary Services Ombudsman (FAIS Ombud) is the one to go.

Complainants can also lodge a complaint in electronic format on the Ombud’s website.

But before submitting a complaint to the FAIS Ombud, first try to resolve the complaint with the responding party. The FAIS Ombud recommends that you do this in writing and keep proof that you had done so.