From CompliNEWS | Financial Service Intelligence Watch
FSCA enforces suspension on multiple FSPs for regulatory breaches
The Financial Sector Conduct Authority (FSCA) has announced the suspension of licences for several financial service providers under the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act). This move, detailed in the FSCA FAIS Notice 27 of 2024 published on 8 April 2024, comes after these entities were found in violation of various sections of the FAIS Act and other regulatory standards.
Effective from the dates specified in the announcement, these suspensions restrict the licensees from engaging in any new business and mandate them to inform all relevant parties about the suspension. Additionally, they are required to take necessary steps to transfer any outstanding business to other licensed providers, ensuring clients’ interests are safeguarded.
This suspension period will last three months, after which the FSCA will either lift the suspension, provided the entities comply with the Act’s requirements, or proceed to withdraw their licences if compliance is not achieved. This action underscores the FSCA’s commitment to maintaining the integrity of the financial services sector and protecting consumers by enforcing strict compliance with regulatory requirements.