Financial Sector Conduct Authority

Overview

Entity Status: Official National Regulator

Confidence Level: 95%

Last Updated: 2026-04-05

The Financial Sector Conduct Authority (FSCA) is South Africa's dedicated market conduct regulator, established on 1 April 2018 under the Twin Peaks regulatory model. As the successor to the Financial Services Board (FSB), the FSCA oversees the market conduct of financial institutions, including banks, insurers, retirement funds, securities firms, and crypto asset service providers.

The FSCA's mandate encompasses:

• Enhancing the efficiency and integrity of financial markets

• Promoting fair customer treatment by financial institutions

• Providing financial education and promoting financial literacy

• Assisting in maintaining financial stability

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Financial Services Conduct Regulation

Regulated Entities and Services

The FSCA regulates a broad range of financial services and service providers:

Securities and Markets:

• Investment firms and asset managers

• Securities exchanges and trading systems

• Central Securities Depositary participants

• Market infrastructure operators

• Equity and debt securities offerings

Insurance Services:

• Insurance intermediaries and advisers

• Insurance underwriters and administrators

• Reinsurance intermediaries

• Insurance-linked derivative products

Credit and Consumer Finance:

• Credit providers and intermediaries

• Mortgage originators and servicers

• Debt collection agencies

Foreign Exchange:

• Forex trading platforms and service providers

• Currency dealers

Alternative Investments:

• Hedge funds and fund managers

• Pension funds and retirement funds

• Collective investment schemes

Conduct Standards and Requirements

Financial service providers must adhere to strict conduct standards including:

• Honest, fair, and professional conduct

• Adequate disclosure of product information

• Conflict of interest management

• Suitability and appropriateness requirements

• Customer complaint handling procedures

• Anti-money laundering and terrorist financing compliance

Consumer Education and Awareness

The FSCA operates a consumer education program promoting financial literacy and awareness of financial products and risks. Key initiatives include:

• Website resources and educational materials

• Media campaigns and public advisories

• Warnings about unauthorized financial service providers

• Guidance on identifying fraudulent schemes

Complaints Handling

The FSCA maintains a complaints resolution mechanism for consumers:

• Direct complaint submission through the FSCA website

• Escalation procedures for unresolved complaints

• Investigation and resolution timelines

• Referral to ombudsman schemes for disputes

Enforcement Against Consumer Detriment

The FSCA actively pursues enforcement action against entities engaged in:

• Unauthorized financial services provision

• Fraudulent and deceptive conduct

• Unsuitable advice and product sales

• Breach of fiduciary duty

• Market manipulation and abuse

Regulatory Powers

Regulatory Tools and Sanctions

The FSCA possesses comprehensive enforcement powers to ensure compliance, including:

Administrative Actions:

• Issuance of compliance notices

• Remedial directives requiring corrective action

• Suspension of licenses

• Revocation of licenses

• Financial penalties and administrative fines

Consumer Redress:

• Authority to compel refunds and compensation

• Customer complaint resolution

• Requirement to establish and maintain compensation schemes

Investigation Powers:

• Subpoena authority for documents and testimony

• Examination of books and records

• Field inspections and on-site examinations

• Search and seizure authority under warrant

Market Conduct Enforcement:

• Prohibition of conduct deemed detrimental to market integrity

• Sanctions for market abuse and insider trading

• Action against false and misleading marketing

Regulatory Role and Function

Legal Foundation

Establishing Legislation

The FSCA derives its authority from the Financial Sector Regulation Act No. 9 of 2017 (the FSR Act), which came into effect on 1 April 2018. This landmark legislation overhauled South Africa's entire financial regulatory framework by introducing the Twin Peaks model of financial sector regulation.

Key Legislative References:

• Financial Sector Regulation Act 9 of 2017 (Principal Authority)

• Financial Advisory and Intermediary Services Act (FAIS)

• Short-Term Insurance Act

• Long-Term Insurance Act

• Pension Funds Act

• Financial Markets Act

• National Credit Act

• National Gambling Board Act (for certain gambling products)

Legal Authority Level: Binding (Layer 1)

Twin Peaks Model

The Twin Peaks regulatory framework divides financial sector supervision between:

1. Prudential Authority (PA): Oversees prudential stability and solvency

2. Financial Sector Conduct Authority (FSCA): Oversees market conduct and consumer protection

This model places equal emphasis on both prudential supervision and conduct regulation, ensuring comprehensive oversight of the financial sector.

Licensing and Authorization Relevance

CASP Regulatory Framework

Following General Notice 1350 issued on 19 October 2022, the FSCA declared crypto assets to be financial products under the Financial Advisory and Intermediary Services Act (FAIS). This directive requires all entities offering crypto-related services to obtain licensing as Crypto Asset Service Providers (CASPs).

CASP License Requirements

Entities requiring CASP licensing include:

• Cryptocurrency exchanges and trading platforms

• Cryptocurrency wallet providers

• Cryptocurrency custodians and asset managers

• Cryptocurrency lending platforms

• Cryptocurrency investment advisers

• Cryptocurrency payment processors

License Application Timeline:

• Applications opened: 1 June 2023

• Initial application deadline: 30 November 2023

• Ongoing rolling applications accepted with continuous processing

Application Statistics (as of December 2025)

• Total applications received: 512

• Approved: 300

• Declined: 14

• Voluntarily withdrawn: 121 (after regulatory discussions)

• Pending review: Requires verification from official sources

Common Reasons for Application Decline

Applications have been declined primarily for:

• Inadequate operational ability and competency

• Insufficient or unclear business plans

• Lack of necessary expertise in crypto assets

• Deficient AML/CFT frameworks

• Inadequate governance structures

Exemptions from CASP Licensing

The following entities are currently exempt from CASP licensing:

• Cryptocurrency miners and node operators: Participants enabling blockchain infrastructure without direct consumer interaction

• Non-Fungible Token (NFT) providers: NFTs are viewed as lower-risk digital tokens and are not subject to current licensing requirements [UNVERIFIED - pending confirmation of current NFT regulatory status]

Supervisory Activities

The FSCA commenced its first supervisory inspection cycle in January 2025, focusing on:

• Governance arrangements and board oversight

• Risk management programmes and controls

• Business risk assessments and mitigation strategies

• AML/CFT compliance

• Customer asset protection

First Inspection Round (January-March 2025): 10 supervisory inspections conducted

Regulatory Sandbox and Innovation Framework

The FSCA supports financial innovation while maintaining regulatory standards through:

• Guidance on regulatory requirements for new business models [UNVERIFIED - specific sandbox program details pending confirmation]

• Consultation with fintech stakeholders

• Balanced approach to emerging technologies including DeFi and blockchain

Cryptocurrency and Digital Assets Focus

The FSCA has prioritized:

• Clear regulatory framework for crypto assets (CASP licensing)

• Stablecoin regulatory oversight considerations [UNVERIFIED - pending formal stablecoin guidance]

• Digital currency supervision (including CBDC considerations) [UNVERIFIED - pending official announcements]

Payments and Money Movement Relevance

The Financial Sector Conduct Authority (FSCA) — South Africa has the following relevance to payments and money movement in South Africa:

Payment Systems Governed or Overseen

The Financial Sector Conduct Authority (FSCA) — South Africa has the following relationship to payment infrastructure in South Africa:

This entity's role in payment systems is primarily regulatory and supervisory rather than operational. It does not directly operate national payment infrastructure but contributes to the regulatory framework governing payment activities in South Africa.

Relationship to Other Regulators

Regulatory Cooperation

The FSCA engages in international coordination through:

• Financial Stability Board (FSB): Participation in global financial stability initiatives

• International Organization of Securities Commissions (IOSCO): Cooperation on securities regulation

• FATF (Financial Action Task Force): Alignment with anti-money laundering standards

• Bilateral arrangements: Cross-border cooperation with peer regulators

SADC and Regional Engagement

As a member of the Southern African Development Community (SADC), the FSCA coordinates with:

• Regional financial regulators

• African banking and insurance authorities

• Cross-border payment system operators

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Physical Address

Financial Sector Conduct Authority

Riverwalk Office Park, Block B

41 Matroosberg Road

Ashlea Gardens Extension 6

Pretoria 0081

South Africa

Contact Information

• General Telephone: +27 12 428 8000

• Toll-Free Hotline: 0800 203 722

• Email (Library/Records): [email protected]

• Website: https://www.fsca.co.za

• Twitter/X: https://x.com/fscasouthafrica

• LinkedIn: [UNVERIFIED - pending confirmation of official FSCA LinkedIn page]

Leadership

Commissioner: Unathi Kamlana

Deputy Commissioner: Astrid Ludin

[UNVERIFIED - Full executive management team listing pending confirmation]

Important Webpages

• Regulated People and Entities: https://www.fsca.co.za/Regulated-People-And-Entities/

• New Financial Service Provider Applications: https://www.fsca.co.za/New-Financial-Service-Provider/

• Legislation and Regulatory Frameworks: https://www.fsca.co.za/Regulatory%20Frameworks/Pages/legislation.aspx

• News and Press Releases: https://www.fsca.co.za (News section)

• CASP Licensing Information: https://www.fsca.co.za/CASP-licensing-portal [UNVERIFIED - specific URL requires confirmation]

Notes on Naming and Language