FSA Regulatory Review | Is the Seychelles Financial Services Authority Reliable? How to Verify Licenses and Prevent Counterfeit Risks

I. Introduction to the Regulatory Agency

The Financial Services Authority ( FSA ) of Seychelles is the financial regulator of the Republic of Seychelles. It is responsible for regulating non-bank financial services, including foreign exchange brokers, trust services, funds, insurance and company registration services.
Official website: https://fsaseychelles.sc
Official email: [email protected]

The FSA was established in 2013 with the primary objective of ensuring transparency and compliance in Seychelles as an international financial center through its legislative and regulatory framework. However, within the global forex industry, the FSA is often viewed as a "light regulatory" or "offshore" agency, attracting a large number of retail forex brokers to register.

II. Scope and Functions of Supervision

• Regulated entities : Foreign exchange and contract for difference (CFD) brokers, international business companies (IBCs), funds, insurance, and trusts.

• Functions : Issue licenses, monitor compliance, investigate violations, and maintain a database of registered companies.

• Characteristics : Compared to the FCA (UK) or ASIC (Australia), the FSA has lower capital requirements and compliance requirements, and is therefore often criticized as a higher-risk offshore license location.

III. License Types and Application Key Points

In the field of foreign exchange and financial services, the main license categories provided by the FSA include:

1. Securities Dealer License

• Forex/CFD brokers mainly use this type of license

• Capital requirement: approximately US$50,000

• Need to set up a local company in Seychelles

2. Fund management and trust services

3. Insurance and reinsurance business

IV. Examples of Regulated Objects

The following are some foreign exchange/financial institutions that hold valid FSA licenses (which can be verified in the official database):

• Equiti Securities Seychelles Ltd – Official Website

• Exness (SC) Ltd – Official Website

• IC Markets (SC) Ltd – Official Website

• Pepperstone Markets (Seychelles) Ltd – Official Website

V. Blacklist and Warning Cases

Although the FSA provides supervision, its "relaxed" nature is often exploited by illegal platforms. Some cases:

• SVG and Seychelles spoofs : Many scam platforms claim to be “FSA regulated”, but the actual license has been cancelled or is not in the database.

• Official FSA warnings page : Warnings – FSA Seychelles

Common risks:

• The platform misappropriated the name of the licensed company

• Falsely displaying “FSA certificate screenshots”

• Continue to solicit customers under the name of FSA after closing the official website or transferring the domain name

VI. License Verification Steps

1. Visit the official FSA website: https://fsaseychelles.sc

2. Click Licensee Search

3. Enter company name or license number

4. Verification:

• Company Full Name

• License Type (Securities Dealer)

• Status (Active/Revoked)

• Registration number and registered address

7. Comparative Analysis

8. Multi-dimensional evaluation (10-point system)

• Transparency: 6/10 — The official website provides a database, but the information is limited

• Penalty severity: 5/10 — Few cases, limited enforcement

• Investor Protection: 4/10 — No compensation fund, higher risk

• International Recognition: 6/10 — Common in the forex industry, but less reputable than FCA/ASIC

• Verifiability: 7/10 – License status can be verified directly through the official website

IX. Risk Warning and Conclusion

• The FSA is a legitimate national regulator , but due to its lighter regulatory standards, it is often regarded as a “bridge license” or “light regulatory option”.

• When choosing a broker with an FSA license, investors should also verify whether it is also regulated by a higher level (such as FCA, ASIC, CySEC).

• If you encounter a platform that only claims to be "regulated in Seychelles", you need to be cautious and guard against the risks of counterfeiting and unlicensed operation.

👉 Conclusion: FSA regulation has a certain degree of legitimacy in terms of compliance, but investor protection is insufficient and the risks are relatively high, making it suitable for articles in the "Risk Assessment" section .