South African FSCA License Inquiry Process | Financial Sector Conduct Authority Compliance Guide

I. Introduction to the FSCA

1.1 Background

The Financial Sector Conduct Authority ( FSCA ) of South Africa was established on April 1, 2018 , replacing the former Financial Services Board (FSB) and was established in accordance with the Financial Sector Regulation Act 2017.

📌Official website : https://www.fsca.co.za

1.2 Regulatory Positioning

The FSCA is one of South Africa's most core financial regulators, responsible for market conduct supervision of non-bank financial services . Together with the South African Reserve Bank (SARB), it forms a two-pillar regulatory framework:

• SARB (South African Reserve Bank) → Responsible for banking system stability and macroprudential supervision

• FSCA → Responsible for market conduct supervision of financial institutions and investor protection

II. Scope of Supervision and License Types

2.1 Financial Services Providers (FSP)

All institutions providing financial services must hold an FSP License , which mainly includes:

• Category I : Financial advisors and brokers

• Category II : Asset managers, portfolio managers

• Category IIA : Alternative Investment Managers

• Category III : Administrative Financial Services Providers

• Category IV : Collective Investment Schemes (CIS)

👉Evidence : FSCA official license classification description
https://www.fsca.co.za/Regulated%20Entities/Pages/Licensing.aspx

2.2 Retail Forex and CFD Brokers

• Since 2017, the FSCA has required all retail forex and CFD brokers to hold an FSP License in order to legally operate in South Africa.

👉Example : Exness ZA (PTY) Ltd → FSCA approved Forex broker.

2.3 Insurance and Pensions

• Insurance companies and intermediaries

• Pension funds and managers

3. How to check FSCA license

3.1 Official Portal

• Licensed Financial Service Provider Enquiry System :
  👉 FSCA Search FSPs

3.2 Query steps

Step 1: Go to the FSCA inquiry page

https://www.fsca.co.za/Fais/Search_FSP.htm

Step 2: Select a search method

• By FSP Name (Company Name)

• Press FSP Number (license plate number)

Step 3: Enter keywords

For example: Exness ZA (PTY) Ltd

Step 4: Verify the results

The system displays:

• Full name of the company

• FSP Number (license plate number)

• License Type

• Status (Authorised/Suspended/Withdrawn)

• Registered office address

Step 5: Cross-validation

• You can check whether there are any penalties or warnings in the FSCA Notices section 👉 FSCA Media Releases

4. Query Examples

Example 1: Legitimate Forex Broker

• Input: Exness ZA (PTY) Ltd

• Result: Shown as Authorised FSP , legally licensed.

Example 2: Legal asset management company

• Input: Allan Gray (PTY) Ltd

• Result: Listed as Category II (asset manager) in the FSCA system.

Example 3: Illegal Forex Platform

• Input: ABC Forex, an overseas foreign exchange company

• Result: Not on the FSCA register.

• May be mentioned in FSCA Investor Alerts :
  👉 FSCA Warnings

V. FSCA Investor Protection Mechanism

5.1 Investment Warning Announcement

The FSCA has an Investor Alerts column that regularly discloses unauthorized platforms.
👉 Investor Alerts

5.2 Enforcement and Penalties

The FSCA has the following powers:

• Revocation of license

• Suspension of authorization

• fine

• Transferring cases to judicial authorities

📌Case Study :
In 2020, the FSCA announced enforcement action against a fake forex broker and reminded the public to avoid investing in it.
👉 FSCA Enforcement Notice

6. Strengths and Limitations of the FSCA

6.1 Advantages

• High international recognition : Global forex brokers often use the FSCA license as a compliance endorsement.

• Comprehensive supervision : covering securities, funds, insurance, foreign exchange, and pensions.

• Transparency and openness : The license plate inquiry system and penalty announcements are open to the public.

6.2 Limitations

• Illegal foreign exchange platforms are active : Despite the strict supervision of the FSCA, there are still overseas black platforms that use the name of the FSCA.

• Limited market capacity : Compared with European and American markets, the South African capital market is relatively small.

• Compliance costs are high : The FSP License approval process is strict.

VII. Investor Compliance Recommendations

1. First check the FSCA official website license directory : FSCA Search FSPs

2. Beware of fake license plate numbers : Black platforms often forge FSP Numbers.

3. Follow FSCA Investor Alerts : Investor Alerts

4. Cross-verify the company's official website : Legitimate companies usually publish the FSP Number on their official website.

5. Avoid “offshore high-yield forex platforms” : The FSCA clearly states that such advertisements are often scams.

8. Conclusion

South Africa's FSCA (Financial Sector Conduct Authority) is Africa's most internationally influential financial regulatory agency, covering securities, funds, insurance, pensions and retail foreign exchange.

Investors should:

1. Verify the FSP Number and company name on the FSCA official website ;

2. Check Investor Alerts to confirm the risks;

3. Compare the information on the company's official website to prevent false impersonation;

4. Be wary of high-risk foreign exchange scams abroad.

📌Official portal summary :

• FSCA official website: https://www.fsca.co.za

• FSP Query System: https://www.fsca.co.za/Fais/Search_FSP.htm

• Investment Alerts: https://www.fsca.co.za/Enforcement-Matters/Pages/Investor-Alerts.aspx

• Enforcement Action Notices: https://www.fsca.co.za/Enforcement-Matters/Pages/default.aspx