FSCA (Formerly FSB) Regulated Forex Brokers

Previously know as the FSB, the FSCA or Financial Sector Conduct Authority is South Africa’s own regulator of all non-banking related activities and it exists to guard our citizens and economy against financial crime.  While is completely legal for South Africans to trade forex with brokers who are not regulated by the FSCA, some South Africans find greater comfort in knowing that it is our courts and laws that oversee the day-to-day workings of these organizations.  That said, below is a list of the brokers that I have had contact with who are regulated in some way by the FSCA.

FSCA Regulated Forex Brokers

The FSCA’s Role in Forex Trading & Brokers

The FSCA’s has the responsibility to oversee the activity in the Forex currency market and protect Forex traders from any irregularities and rogue brokers. Generally, if you want protection from the FSCA when engaging in the Forex market, you want your broker to be fully regulated by the FSCA.

Once a Forex broker is registered with the FSCA you can find if your broker is in good standing with the FSCA by searching the name of the broker in the FSCA database. For example, IronFx is a fully regulated and authorized broker to do business in the South Africa market.  This same database will even show if an entity put in an application to be regulated by the FSCA or has been stripped of their FSCA regulation in the past.

FSCA regulation means a number of things for our brokers.  First off, we like them more.  FSCA regulation is our countries regulations, and it our courts and Supreme court that overseas their workings.  As a note, we continually push brokers who come in contact with us to get their FSCA regulation because we believe that it helps our visitors.  The other way it helps us as South Africans is that a regulated broker is able to open up a company and physical offices in South Africa which enables them to open local bank accounts so your funds can be kept locally and more easily available for withdrawal.

History of the FSB & FSCA

Previously known as the Financial Services Board, commonly referred to as FSB, roared into life in 1991 when it first opened its doors following the recommendations of Van der Horst led committee. The committee had recommended the creation of an independent body to oversee or supervise and regulate the non-banking financial services sector in South Africa.

After the Van der Horst committee, various acts have increased and expanded the mandate of the Financial Services Board.  In 2001, the Financial Intelligence Centre Act and the subsequent amendments that followed later increased the FSB mandate to include issues of combating money laundering.

Later in 2004, the Financial Advisory and Intermediary Services, also known as FAIS, expanded the role of FSB to include, among other things, the conduct of market in the banking sector.

Being an independent body, the Financial Services Board does the regulation in the interest of the public; to caution them publicly against any illegal scheme and in line with its mission of providing and maintaining a sound and conducive environment for investment in South Africa.

Internationally, the Financial Services Board is a recognized member of the International Organization of Securities Commissions (IOSCO) and is fully active in all activities of Africa’s regulatory bodies, and takes a leading role in regulation in the SADC block.

As of April 1st, 2018, the FSB changed their name to the FSCA or the Financial Sector Conduct Authority which is responsible for market conduct regulation and supervision, including financial service providers – like forex brokers, investment funds, and investment managers.

The FSB & FSCA Structure

The Financial Services Board is run by a board which executes its mandate through a number of committees. The FSCA has a sole mandate to pick the FSCA executive officer making the organization less of a target of the financial politics on pressures. Apart from overseeing the day-to-day running of the institution, the executive officer acts as the Registrar of the Non-banking Financial Institutions in South Africa.

The FSCA Executive Officer is deputized by four deputies who directly supervise the following industries:

  • Retirement Funds and Friendly Societies
  • Financial Advisory and Intermediary Services
  • Investment Institutions
  • Insurance Institutions

Key Financial Services Board Responsibilities

True to its mission of ensuring that the investment environment in South Africa is sound and conducive, the Financial Services Board has built a strong reputation for their regulatory framework in the following sectors:

  • Capital Markets
  • Insurers
  • Financial Services Providers
  • Collective Financial Schemes
  • Nominee Companies
  • Friendly Societies
  • Retirement Funds

Over the years, the FSB regulation of these entities has gone a long way in protecting the investments of the South African public. The FSB is has positioned itself well in ensuring that all the bodies under its strict watch adhere to the relevant laws and regulations. In case of any breach, the FSB has a committee that has all the powers to impose compensation orders, unlimited penalties and cost orders. All these orders are normally adhered to as though they are a judgment from South Africa’s Supreme Court.

The Financial Services Board runs a customer complaints service plus a separate self-policing appeals board which any aggrieved entity can approach should they feel like they might have been aggrieved by either the FSB executive officers or FSB as a body.

Summary

The Financial Services Board, now known as theFinancial Sector Conduct Authority,  is credited for bringing stability and transparency in South Africa’s investment industries. This body has prevented hundreds of thousands of South Africans from losing capital to illegal investment schemes.  It is now possible that a person looking to make an investment can easily check with the FSCA if the entity they are dealing with, or looking forward to dealing with, has a relationship with our regulatory agency.

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