To give financial advice or render intermediary services you must first be authorised, with a licence, by the Financial Sector Conduct Authority (FSCA) under the Financial Advisory and Intermediary Services (FAIS) Act 37 of 2002. In FSCA terms this is a licence application, not a simple registration: you apply online, and the FSCA assesses whether the business, its key individuals and its representatives are fit and proper.
The FSCA says licensing is proportionate to risk, and that crypto asset service providers must be licensed too. Start with the FSCA page for new financial services providers.
Business Requirements at a Glance
- Authorisation first. The FSCA must authorise you before you provide financial services.
- Fit and proper. The applicant, its key individuals and its representatives must meet the FSCA Determination of Fit and Proper Requirements, 2017 (Board Notice 194 of 2017).
- Key individual. Each key individual is assessed on form FSP 4D.
- Exams. Regulatory exams RE1 (FSPs, key individuals and compliance officers) and RE5 (representatives) apply, with RE3 or RE4 added for some categories.
- Online application. New applications go through the FSCA FAIS e-Licensing System.
Registration and Legal Requirements
The FSCA fit and proper page sets out what FSPs, key individuals and representatives must meet under Board Notice 194 of 2017:
- honesty, integrity and good standing (Chapter 2)
- competence (Chapter 3), made up of minimum experience, minimum qualifications, regulatory examinations, and class of business and product-specific training
- continuing professional development (Chapter 4)
- operational ability (Chapter 5)
- financial soundness (Chapter 6)
The FSCA regulatory examinations FAQ lists four regulatory exams:
- RE1 — FSPs, key individuals and compliance officers in all categories (80 questions)
- RE3 — Categories II and IIA, in addition to RE1 (30 questions)
- RE4 — Category III, in addition to RE1 (30 questions)
- RE5 — representatives (50 questions)
RE5 is not required for representatives who render services only in respect of funeral and friendly society benefits, only Tier 2 products, or only the execution of sales of Tier 1 products. Check the FSCA FAQ for the exact wording before relying on an exemption.
Documents and Ownership Information Required
The FSCA New Applications page lists the forms that make up an application:
- FSP 1 — business information
- FSP 2 — licence categories applied for
- FSP 3 — directors, shareholders, partners, trustees and officers
- FSP 4A, 4B and 4C — fitness and propriety (the entity, its directors, and a natural person)
- FSP 4D — fitness and propriety of key individuals
- FSP 5 — representatives
- FSP 6 and 12 — compliance officer
- FSP 7 — operational ability
- FSP 8 — financial soundness
- FSP 9 — external auditor
Which forms apply to you depends on your legal form and the categories you apply for, so work from the FSCA list rather than a generic checklist.
Tax, Licence and Compliance Requirements
The licence is the FSCA authorisation itself, and it is granted for the categories you apply for. Beyond the forms above, the FSCA assesses operational ability (Chapter 5 of the Determination, form FSP 7) and financial soundness (Chapter 6, form FSP 8).
The application fee, any thresholds for financial soundness, and any insurance or capital expected for your category are not set out on the FSCA application pages. They are set in the FSCA fee determination and in Board Notice 194 of 2017, so confirm the figures that apply to your category with the FSCA before you budget.
Process, Deadlines and Ongoing Obligations
How to apply, step by step:
- Identify the licence categories you need and your key individuals.
- Make sure the key individuals and compliance officer have passed the right regulatory exams.
- Read the FAIS Online Licence Application Guide, linked on the FSCA New Applications page.
- Complete the FSP forms on the FAIS e-Licensing System and submit them to the FSCA.
The FSCA pages do not publish a processing time, so do not promise clients a start date. Once licensed, key individuals and representatives must keep meeting the continuing professional development requirement in Chapter 4 of the Determination.
Frequently Asked Questions
Who needs FSP authorisation?
Anyone who provides financial services as defined in the FAIS Act needs to apply for and obtain a licence from the FSCA first. Crypto asset service providers must also be licensed.
How is a key individual registered?
Each key individual is assessed on form FSP 4D and must meet the competence requirements of Board Notice 194 of 2017, including the RE1 exam, plus RE3 or RE4 for Categories II, IIA or III.
What is the difference between a key individual and a representative?
A key individual is assessed on the FSP 4D form as part of the FSP’s own application, while representatives are listed on form FSP 5 and, unless an exemption applies, must pass RE5.
How do I apply, and how do I deal with the FSCA?
Apply through the FSCA FAIS e-Licensing System using the FSP forms and the application guide on the FSCA New Applications page.
How much does an FSP licence cost?
The FSCA application pages do not state a fee. Fees are set in the FSCA’s own fee determination, so confirm the current amount with the FSCA before you apply.
Confirm the current position with the Financial Sector Conduct Authority at fsca.co.za. See also our guide to company registration requirements and browse all business and compliance requirements.