Category II discretionary FSP licence in South Africa

About This Company

Form FSP4D is the primary regulatory submission the buyer must inspect before executing share purchase documents. Under section 8(4)(b) of the Financial Advisory and Intermediary Services Act, 2002, any new key individual must secure formal fit-and-proper clearance from the Financial Sector Conduct Authority before starting work. The company holds a Category II discretionary FSP licence supervised from Pretoria. While ordinary FSPs do not need section 158 prior-approval for a change of control, the entity must notify the FSCA when a party acquires significant ownership. Section 157 defines this as having a qualifying stake or the power to appoint 15% of the governing body. Any lapse or non-compliance requires reporting within 30 days.

Several checks should be completed on the public register before signing. The buyer should run a search by entity name, FSP licence number or trading name to confirm active status across categories (I-IV). Permitted activities cover portfolio management and investment advice under the Financial Advisory and Intermediary Services Act 37 of 2002. Derivative activity requires separate authorisation as an ODP under the Financial Markets Act 19 of 2012. The standard application fee stands at R16,313. This authorisation is domestic and does not provide passport privileges.