Who needs an FSP licence in South Africa?

Companies offering financial advice, intermediary services, hedge fund management, discretionary investment management, administrative financial services, or certain crypto asset financial services typically need FSP authorisation.

Can a foreign-owned company obtain an FSP licence?

Yes. Foreign shareholders and directors are generally permitted, but the applicant must establish an appropriate South African entity and satisfy governance, operational, and fit-and-proper requirements.

What is the difference between Category I and Category II?

Category I covers advice and/or intermediary services where the client makes the final investment decision. Category II covers discretionary financial services where the client grants a mandate to make investment decisions on their behalf.

How long does the FSP licensing process take?

The process typically takes 4-9 months depending on licence category, application complexity, document completeness, and FSCA query response times.

FSCA FSP Licence - South Africa

The FSP licence is South Africa's primary regulatory authorisation for businesses and individuals providing financial advice or intermediary services in respect of financial products, including forex/CFD brokers.

From scratch

From EUR 20,000

Timeline

From 4 months

Ready made

From EUR 70,000

On this page

Quick facts

Regulator / authority

Financial Sector Conduct Authority (FSCA)

Coverage

Financial advice, intermediary services, forex/CFD brokerage, discretionary portfolio management, hedge fund management, administrative financial services, and services relating to crypto assets.

Best for

Investment firms, forex and CFD brokers, wealth managers, securities dealers, fintechs, and financial advisers seeking a regulated South African presence.

Local presence

Required (South African-registered legal entity through CIPC - The Companies and Intellectual Property Commission)

Substance level

Medium (local company, at least one fit-and-proper Key Individual, applicable RE1 and experience, and an appropriately qualified local Compliance Officer where required).

Banking friendliness

Medium

Who this is for

Best fit

Provide advice on, or act as an intermediary for, financial products regulated under the FAIS Act
Operate a forex/CFD brokerage, discretionary investment management business, or hedge fund
Provide advisory, intermediary, discretionary management, or other authorised services relating to crypto assets

Operate an administrative FSP, LISP platform, CIS administrator, or assistance business administrator
Hold multiple FSP categories under one juristic entity, such as Category I and Category II
Use a reputable, FATF-aligned framework for a regulated South African presence

What you can do (scope)

Category I - advice and intermediary services for authorised financial products
Category II - discretionary financial services and portfolio management
Category IIA - discretionary management of hedge funds
Category III - administrative financial services for collective investment schemes
Category IV - assistance business administrative services

Requirements overview

Company & presence

A South African juristic person registered with CIPC, or a qualifying sole proprietor, with a registered local office address.

Key persons / governance

At least one approved Key Individual meeting FSCA Fit and Proper requirements, an approved Compliance Officer where required, and authorised representatives meeting applicable requirements.

Capital / safeguarding / bonds

No single flat minimum capital figure across all categories. General solvency, working capital, and liquidity requirements apply by category; Category IIA and III FSPs must additionally hold assets exceeding liabilities by at least ZAR 3 million.

AML/CTF baseline expectations

FSPs are Accountable Institutions under the FIC Act: AML registration, RMCP, CDD/EDD, sanctions/PEP/adverse-media screening, CTR/STR/TPR filing where applicable, and Travel Rule compliance for qualifying crypto asset transfers.

Reporting / audits

Annual financial statements or audit reports, FSP and Compliance Officer reports, CPD cycle management, ongoing FIC reporting, and levy payments.

Process (end-to-end steps)

Step 1: Eligibility & scope assessment

Determine the appropriate FSP category, authorised financial product categories, Key Individual fit-and-proper status, competency gaps, RE requirements, and applicable obligations.

Step 2: Entity setup

Incorporate or confirm the South African entity, establish the registered office, appoint governance and control functions, and prepare corporate records.

Step 3: Documentation preparation

Prepare the business plan, licensing application, RMCP, AML/CTF documents, fit-and-proper files, financial projections, conflict policy, complaints framework, and POPIA privacy policies.

Step 4: FSCA application submission

Complete the FSCA e-Portal application, upload supporting documents, pay application fees, verify completeness, and receive confirmation of application acceptance.

Step 5: FSCA review & regulatory assessment

Respond to regulatory queries, provide supplementary documents, meet response deadlines, and complete Licensing Committee assessment before authorisation.

Step 6: Authorisation & go-live

Receive the FSP licence and registration number, complete operational setup, register with the FIC where applicable, and implement reporting, governance, and compliance monitoring.