Over-the-Counter Derivative Provider (ODP) authorisation (South Africa)
The Over-the-Counter Derivative Provider (ODP) authorisation is issued by the Financial Sector Conduct Authority (FSCA) under s.6(8) of the Financial Markets Act 19 of 2012 and regulation 2 of the FMA Regulations 2018. A new significant owner does not need prior approval. The ODP notifies the FSCA and the Prudential Authority within 30 days of becoming aware of significant ownership.
At a glance
| Official name | Over-the-Counter Derivative Provider (ODP) authorisation under the Financial Markets Act1 |
|---|---|
| Also known as | ODP · OTC derivative provider licence · South African ODP licence · Financial Markets Act ODP authorisation |
| Issued by | Financial Sector Conduct Authority |
| Jurisdiction | South Africa |
| Licence family | Investment firm / broker-dealer |
| Legal basis | Financial Advisory and Intermediary Services Act 37 of 20022 Financial Markets Act 19 of 20123 Financial Markets Act Regulations, 2018 (GN R98), regulation 2 (authorisation of OTC derivative providers under FMA s.6(8))4 |
| Passporting | Domestic only |
What it lets you do
| Dealing on own account | Trading financial instruments against proprietary capital, which includes acting as counterparty to client trades. |
|---|---|
| Execution of orders on behalf of clients | Concluding agreements to buy or sell financial instruments on behalf of clients. |
Where it is valid
Buying a company that already holds it
Notification only. An ODP that is not also a bank or an insurer needs no prior approval for a new owner. The prior-approval rule in FSR Act s.158 applies only to eligible financial institutions (banks, insurers and market infrastructures), managers of collective investment schemes and institutions prescribed by regulation (s.158(1)). An OTC derivative provider authorised under FMA Regulations 2018 reg. 2 is none of these. A significant owner is anyone able to control or influence materially the business or strategy of the firm. That ability exists where a person can appoint 15% of the governing body, or holds a qualifying stake of at least 15% of the shares, voting rights or disposal rights (s.157). Under Joint Standard 1 of 2020 s.5.2 the ODP notifies the FSCA and the Prudential Authority within 30 days of becoming aware of significant ownership or potential significant ownership. Significant owners must meet fit and proper standards, and the regulator can direct one to submit and carry out a plan to stop being a significant owner (s.159).5
Ready-made companies holding this licence: see verified positions.
IF in other countries
| Country | Licence | Regulator | Min. capital | Application fee | Statutory time |
|---|---|---|---|---|---|
| Abu Dhabi Global Market (ADGM) | Investment firm licenceFinancial Services Permission for Dealing in Investments as Principal (Category 2) | FSRA | n/a | USD 40,000 | n/a |
| Abu Dhabi Global Market (ADGM) | Investment firm licenceFinancial Services Permission for Dealing in Investments as Agent or Matched Principal (Category 3A) | FSRA | n/a | n/a | n/a |
| Abu Dhabi Global Market (ADGM) | Investment firm licenceFinancial Services Permission for Advising on Investments or Arranging Deals in Investments (Category 4) | FSRA | n/a | n/a | n/a |
| Australia | Australian financial services licence (AFSL) | ASIC | n/a | n/a | n/a |
| Bermuda | Investment Business LicenceInvestment Business Licence (standard licence, under the Investment Business Act 2003) | BMA | n/a | n/a | n/a |
| British Virgin Islands | Investment Business LicenceInvestment Business Licence (Categories 1-4: dealing, managing, advising, custody/administration of investments) | BVI FSC | n/a | n/a | n/a |
| Cayman Islands | Securities Investment Business Licence / Registered Person | CIMA | n/a | n/a | n/a |
| Cyprus | Cyprus Investment Firm (CIF) authorisation | CySEC | n/a | EUR 7,000 | ~6 mo |
| Czech Republic | Investment Firm licence | CNB | n/a | CZK 20,000 | ~6 mo |
| Dubai International Financial Centre (DIFC) | Investment firm licenceFinancial Services Permission for Dealing in Investments as Principal (Category 2) | DFSA | n/a | USD 40,000 | n/a |
| Dubai International Financial Centre (DIFC) | Investment firm licenceFinancial Services Permission for Dealing in Investments as Agent or Operating an Alternative Trading System (Category 3A) | DFSA | n/a | USD 25,000 | n/a |
| Dubai International Financial Centre (DIFC) | Investment firm licenceFinancial Services Permission for Advising on Financial Products or Arranging Deals in Investments (Category 4) | DFSA | n/a | USD 15,000 | n/a |
| Estonia | Authorisation as an investment firm | FI | n/a | EUR 3,000 | ~2 mo |
| France | Financial investment adviser status | AMF | n/a | n/a | n/a |
| Germany | Investment firm licence | BaFin | n/a | EUR 6,336 | ~6 mo |
| Hong Kong | Type 1 Licence for Dealing in Securities | SFC | n/a | HKD 4,740 | ~3.5 mo |
| Hong Kong | Type 2 Licence for Dealing in Futures Contracts | SFC | n/a | HKD 4,740 | ~3.5 mo |
| Hong Kong | Type 4 Licence for Advising on Securities | SFC | n/a | HKD 4,740 | ~3.5 mo |
| Hong Kong | Type 6 Licence for Advising on Corporate Finance | SFC | n/a | HKD 4,740 | ~3.5 mo |
| Hong Kong | Type 7 Licence for Providing Automated Trading Services | SFC | n/a | HKD 4,740 | ~3.5 mo |
| Ireland | Investment Firm Authorisation (MiFID II) | CBI | n/a | n/a | n/a |
| Italy | Investment firm licence (SIM) | CONSOB | n/a | n/a | ~6 mo |
| Latvia | Investment firm licence | LB | n/a | n/a | n/a |
| Lithuania | Financial brokerage firm licence | LB | n/a | n/a | n/a |
| Luxembourg | Investment firm authorisation | CSSF | n/a | EUR 50,000 | ~6 mo |
| Malaysia (Labuan) | Securities Licensee licenceSecurities Licensee licence (dealing in / advising on securities) | Labuan FSA | n/a | n/a | n/a |
| Malta | Investment services licence (Category 1, 2, or 3) | MFSA | n/a | EUR 7,250 | ~6 mo |
| Mauritius | Investment Adviser Licence | FSC | n/a | n/a | n/a |
| Mauritius | Investment Dealer Licence | FSC | n/a | USD 500 | ~0.5 mo |
| Netherlands | Investment firm licenceInvestment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II | AFM | n/a | EUR 200 | ~3 mo |
| Poland | Brokerage House licence (dom maklerski) | KNF | n/a | EUR 4,500 | ~2 mo |
| Seychelles | Securities Dealer's Licence | FSA | n/a | n/a | n/a |
| Singapore | Capital Markets Services (CMS) Licence | MAS | n/a | SGD 1,000 | n/a |
| Slovakia | Investment firm licence | NBS | n/a | n/a | n/a |
| South Africa | Financial Services Provider licence - Category IFinancial Services Provider licence - Category I (advice and/or intermediary services, non-discretionary, incl. crypto assets) | FSCA | n/a | n/a | n/a |
| South Africa | Financial Services Provider licence - Category II (discretionary FSP) | FSCA | n/a | n/a | n/a |
| South Africa | Over-the-Counter Derivative Provider (ODP) authorisationOver-the-Counter Derivative Provider (ODP) authorisation under the Financial Markets Act | FSCA | n/a | n/a | n/a |
| Spain | AV) investment firm licence | CNMV | n/a | EUR 10,000 | ~6 mo |
| Spain | Empresa de Asesoramiento Financiero (EAF) licence | CNMV | n/a | EUR 1,000 | ~6 mo |
| Switzerland | Portfolio manager licence | FINMA | n/a | n/a | n/a |
| Switzerland | Securities firm licence | FINMA | n/a | n/a | n/a |
| United Kingdom | MIFIDPRU Investment Firm Authorisation (Part 4A FSMA) | FCA | n/a | GBP 2,820 | ~6 mo |
Values come from each licence's page, where every figure has its source.
Laws behind it
- Financial Advisory and Intermediary Services Act, 2002: Act No. 37 of 2002
Sources
- fanews.co.za: 31757 · secondary · retrieved 2026-09-24
- gov.za: financial advisory and intermediary services act · retrieved 2026-09-24
- gov.za: financial markets act · retrieved 2026-09-24
- gov.za: 41433rg10802gon98 (PDF) · retrieved 2026-10-05
- saflii.org: fsra2017267 · retrieved 2026-10-05
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