The Financial Services Conduct Authority (FSCA) was also previously known as the Financial Service Board, or FSB, is a supervisory body of financial services industry in South Africa under the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act). It is the financial watchdog in South Africa which governs regulation of the financial market by protecting South African traders and investors along with the economy.
The FSCA is the market conduct regulator of 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.
The Financial Sector Conduct Authority (FSCA) is responsible for market conduct regulation and supervision. FSCA aims to enhance and support the efficiency and integrity of financial markets and to protect financial customers by promoting their fair treatment by financial institutions, as well as providing financial customers with financial education. The FSCA will further assist in maintaining financial stability.
Entities registered both in and outside South Africa can apply for a license with FSCA.
In order to maintain adequate management and control of the business it is required to appoint a Representative, at least one Key Individual and a compliance officer; all the persons must be registered with FSCA. At least 1 Key Individual must be resident in South Africa in order to effectively take part in company management. Each Key Individual and Representative must pass certain regulatory examinations that are held on regular basis in South Africa.
The FSCA protects people specifically from potential money laundering as well as any fraudulent schemes. Even is South African traders and investors being free to make use of brokers that are not regulated by the FSCA such as many offshore brokers, they are advised to make use of brokers who are specifically regulated by the FSCA.