FSCA on trust, conduct and regulation of financial advisers
A Conversation with Marrelie Victor, Departmental Head: Financial Advisers and Intermediaries, FSCA
In a sector where trust underpins every financial decision, we spoke to Marrelie Victor, who heads the Financial Advisers and Intermediaries Department at the FSCA, about the role intermediaries play, the risks when that trust is broken, and how regulation is evolving to protect financial customers.
Why is the regulation of financial advisers and intermediaries so critical to protecting financial customers?
There is a significant reliance on financial advisers by both individuals and businesses. Many people do not fully understand the financial environment, so they depend on advisers to guide them on decisions such as investments, insurance and retirement planning.
It is also a relationship-driven space. People want to deal with someone they trust when making these decisions. That reliance makes it essential that advisers act responsibly and that appropriate standards are consistently upheld.
What does responsible and ethical financial advice look like in practice?
It starts with putting the client’s interests first. This includes transparency around fees, managing conflicts of interest and ensuring that advice is appropriate to the client’s needs.
Advice should not be driven by commission. The focus must always be on achieving fair outcomes for the customer.
How does the FSCA balance proactive supervision with enforcement when misconduct occurs?
Our approach is to be proactive, not only reactive. This begins with licensing, where we assess honesty, integrity, competence and financial soundness, and continues through ongoing supervision.
We also aim to create an environment where intermediaries engage with us early if something does not seem right.
Where misconduct does occur, we take action, including suspending or withdrawing licences and debarring individuals. We also analyse trends across cases to identify broader risks and provide guidance to the industry.
What are the most common misconceptions about financial advisers and the FSCA?
A common misconception is that advisers have expertise across all financial products, when in reality they are licensed in specific areas.
There is also a belief that financial advice is only needed later in life, whereas early financial planning can be just as important.
In terms of the FSCA, we are often seen as an ombud. We are not. We do not resolve individual disputes or provide compensation but rather supervise conduct and ensure the industry meets required standards.
What advice would you give to young professionals interested in financial regulation and consumer protection?
Build a strong foundation in areas such as law, finance or economics, and develop your technical skills, particularly in areas like data analysis.
It is also important to understand the regulatory environment and the broader impact that financial decisions have on people and society.
Above all, maintain a strong ethical perspective, stay curious and continue learning from others. Always remember who the work is for. It is the customer.
Marrelie Victor is the Departmental Head: Financial Advisers and Intermediaries at the FSCA. Her work focuses on strengthening market conduct, supporting responsible financial advice and ensuring that customers are treated fairly within an evolving financial landscape.
