Posted: 03 Feb 2020
A FSP License is a license which is obtained from the FSCA. This license authorizes certain financial advisers to act as representatives or key individual of the company they work for, in which case the company is the actual registered Financial Services Provider (FSP) License holder.
A Financial Service Provider (FSP) is a business offering financial advice and/or intermediary services and is made up of Key individuals, these people are responsible for the FSP and all the representatives who work for the FSP. They are also the people who have to report to the regulator and who the regulator will hold responsible for any actions against the FSP; and Representatives, these are the people who will give advice on financial services to prospective policyholders and will conclude all the necessary intermediary services with regards to products selected.
In order to operate as an authorized FSP in South Africa, a business entity or individual must have a licence. FAIS requires that persons that provide advice or intermediary services with respect to financial products, to register as a FSP. Without this licence, they cannot operate as a FSP. No person may act or offer to act as a FSP within South Africa unless such a person is licensed to do so in accordance with the requirements of section 8 of FAIS.
Click on the below guideline for more information on how to obtain a FSP License.