In order for South African financial service advisors to render financial services, they are required by law to obtain a license from the Financial Services Board (FSB). FSB will then ensure that these advisors are well-informed and very knowledgeable on the financial subjects to offer advice.
Some financial advisors are authorized to act as representatives or key individuals of the company they work for, and the company should be an actual registered Financial Services Provider (FSP) license holder.
In order to sell financial products in South Africa, that alone is subject to regulation under the FAIS Act (Financial Advisory and Intermediary Services Act, 2002) and applies to FSPs (Financial Service Providers), anywhere even when they are outside of South Africa.
You can only act as an FSP in South Africa provided that you are licensed in accordance with the requirements of section 8 of FAIS.
What is FSP?
FSP stands for Financial Service Provider, which is a business that offers financial advice and/or intermediary services. The intermediary services can include insurance companies, brokerages, etc. FSP is made up of Key individuals who are responsible for the FSP and all its representatives. Secondly, there are Representatives, who give advice on Financial Services offered in South Africa. They offer advice to prospective policyholders.
There is a specific criterion that’s used when applying to become a Financial Service Provider. Whether you are an individual or a business, you will be evaluated under the following criteria.
- You have to have qualities of honesty and integrity
- You have to obtain knowledge, experience, and qualification of the field
- Operational ability
- In the business side of things, you have to have financial soundness
- Maintain a continuous professional development
For more information, you can visit The FSCA website, as well as to make a search of FSPs.