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Financial Sector Conduct Authority

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Requirements for Obtaining a License under the Financial Sector Conduct Authority (FSCA)

To obtain a license under the Financial Sector Conduct Authority (FSCA), applicants must meet specific regulatory requirements and pay the prescribed fees for their respective applications. Below is a summary of the key licensing fees and requirements.

Application Fees

  1. Application for Exchange, Central Securities Depository, or Clearing House License:
  • Fee: R 286,000
  1. Renewal of Exchange, Central Securities Depository, or Clearing House License:
  • Fee: R 13,800
  1. Change of Name or Amendment of License Terms and Conditions:
  • Fee: R 550
  1. Request for a Certified Copy of a License Document:
  • Fee: R 550
  1. Application for the Approval of a Nominee:
  • Fee: R 4,515
  1. Approval for Demutualisation of a Self-Regulatory Organisation:
  • Fee: R 48,400
  1. Approval of Amalgamation or Transfer of Business for Self-Regulatory Organisations and Clearing Houses:
  • Fee: R 48,400
  1. Approval of Acquisition of Shares or Interests in a Self-Regulatory Organisation (Under Section 57(3) and (4) of the Securities Services Act, 2004):
  • Fee: R 5,000
  1. Approval for Inclusion of Securities Issued by an Exchange in Its Own Listing:
  • Fee: Determined by the listing and documentation inspection fees as per the exchange’s requirements.

Application Requirements

  1. Submission of Application Forms:
  • Applicants must complete the relevant forms for the type of license being sought.
  • All required supporting documents must accompany the application.
  1. Regulatory Compliance:
  • Applicants must demonstrate compliance with the Securities Services Act, 2004 and other applicable FSCA regulations.
  1. Financial Stability:
  • Entities must provide evidence of sufficient capital to support their operations, in line with FSCA’s financial requirements.
  1. Governance and Fit-and-Proper Standards:
  • Directors, key management, and shareholders must meet the FSCA’s fit-and-proper criteria, which assess integrity, competency, and financial soundness.
  1. Operational Policies and Procedures:
  • Applicants must submit policies for risk management, compliance monitoring, and dispute resolution to demonstrate their ability to operate within regulatory standards.
  1. Nomination and Approval of Nominees:
  • Any nominee associated with the application must be pre-approved by the FSCA.

Processing Time

The FSCA typically processes applications within a reasonable timeframe, depending on the complexity of the application and the completeness of the information provided. Delays may occur if further clarification or additional documentation is required.

Key Notes

  • All application fees are non-refundable and must be paid at the time of submission.
  • License renewal and amendments require separate applications with respective fees.
  • Non-compliance with regulatory requirements may result in application rejection or additional scrutiny.

By meeting these requirements and providing accurate and complete information, applicants can successfully secure licenses under the FSCA, ensuring compliance and adherence to South Africa’s financial regulatory framework.