From CompliNEWS | Financial Service Intelligence Watch

FSCA announces withdrawal of 55 licences in major FAIS Act enforcement

In a significant regulatory action, the Financial Sector Conduct Authority (FSCA) has withdrawn the licences of several financial service providers (FSPs) for various contraventions of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) and related regulations. The detailed notice, FSCA FAIS Notice 26 of 2024, published on 8 April 2024, lists the affected entities along with the reasons for the withdrawal of their authorisations, effective from the dates specified in the announcement.

This move underscores the FSCA’s commitment to upholding the integrity and compliance of the financial services sector. The implicated firms range widely in their focus, from funeral services and insurance brokerage to investment consulting, highlighting the broad scope of the FSCA’s regulatory oversight. Among the reasons for license withdrawal are contraventions of sections related to due diligence requirements, unauthorised financial activities, and failure to adhere to specified operational standards.

This enforcement action follows the FSCA’s mandate to protect consumers and ensure the financial stability of the South African market by rigorously enforcing compliance with the FAIS Act. The notice serves as a reminder to all financial service providers of the critical importance of adherence to legal and regulatory standards.