Financial Sector Conduct Authority

South Africa, and Africa in general, is showing a surge in the interest surrounding forex and online trading. Therefore it is of great importance that the local regulator is up to speed.

The Financial Services Conduct Authority (FSCA), replaced the Financial Service Board(FSB) as the primary regulator of Forex / CFD brokers in 2018, is getting more involved as a regulator. 

It aims to protect investors from losing money through scams and fraud thanks to a safer, more transparent and reputable trading environment. 

Although FSCA is less restrictive compared to other established European regulators, but it is well regarded for governance and will give you a strong framework when required with forex brokers in South Africa.

1. Safety of Client Funds：

FSPs are required to have a separate bank account for clients funds which is audited by an approved auditor and the audits findings must be submitted to the FSCA annually.

2. Requirement on Forex Brokers' Reports：

Audit Reports; anti-money laundering Reports; Compliance Reports.

Generally speaking, FSCA-regulated broker profile will be found at the Authorised Financial Service Providers page on FSCA website. Try to find it and check if it will match the info from the broker website.

The detailed steps are as follow:

1. Find the FSP number (preferred) or name of the forex broker, which you can get from the broker’s website;

2. Enter the FSP number or name into the search bar on https://www.fsca.co.za/Fais/Search_FSP.htm;

3. And you’ll get the broker’s contents on FSCA website. At this time you will click the 'Products Approved' and check if the broker has the authorization to provide 'Derivative investment';

4. If all the above steps have been done, don’t forget to check the most important information: check if the firm details published on FSCA website matches the ones you’ll go to trade with. If no, please keep away the broker because it’s probably an unauthorized firm and your money will fall in danger.

When you have disputes with a FSCA-regulated broker, you can proceed the following ways:

1st way: The recommended way is to contact the broker directly and discuss with them to find a solution.

2nd way: If the response was not what you were hoping for, try to contact FAIS Ombud in South Africa. It does not compensate for any loss but acts as a mediator between the invsetor and the authorized financial service provider. The FAIS Ombud has a monetary jurisdictional limit of R 800 000.

You can submit the complaint: 

● through online procedure;

● via e-mail to info@faisombud.co.za;

● via fax on 012 348 3447;

● by post to PO Box 74571, Lynnwood Ridge, 0040.

Online Complaint Form: https://faisombud.co.za/lodge-complaint/

Emailed Complaint Form: https://www.faisombud.co.za/wp-content/uploads/2018/07/Complaint_form_new_template_14062018_002.pdf 

3rd way: If the 2 ways above can't solve the dispute, the last way is to issue a case to the court in South Africa.