FSCA rightly reviewing financial service provider definitions
Improvements must reflect the changes, standardise the licensing regime, and level the playing field
The Financial Sector Conduct Authority (FSCA), which regulates the financial services industry in SA, is engaged in an ongoing process of reviewing its licensing regime and other related matters, specifically the licence category dealing with what is defined as discretionary financial service providers (FSPs). The FSCA has made some tentative proposals and has invited inputs from industry stakeholders.
A major concern is that the very broad definition of a discretionary FSP does not always distinguish between the different forms or types of services offered by different types of FSPs, resulting in a number of problematic issues. The findings of extensive research I undertook and presented in a paper entitled “Unpacking Discretionary Investment/Fund Management in SA”, which was shared with the FSCA, identified a number of concerns and areas of weakness...
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