FSCA publishes its latest Regulatory Actions Report

The Financial Sector Conduct Authority (FSCA) has published its latest Regulatory Actions Report for the previous financial year. The report highlights the FSCA’s enforcement efforts between 1 April 2023 and 31 March 2024 and outlines the Authority’s future focus areas based on identified trends and risks.

The report aims to increase the visibility of the FSCA's enforcement activities, deter misconduct and raise awareness of regulatory requirements in the financial sector. It sets clear expectations for good conduct within the sector and identifies emerging trends and risks.

The report details a number of enforcement interventions by the FSCA, including 156 debarments, 104 public warnings, 41 Enforceable Undertakings, suspension of 1061 licences, the withdrawal of 75 licences, and the imposition of penalties in excess of R943 million on 33 persons. The report also details the number of cases the FSCA has fully investigated and handed over to various law enforcement agencies, including highly publicised cases. One of the notable cases is the prosecution of Mr Craig Warriner, who received an effective 25-years sentence for fraud and unregistered financial services business, following successful collaboration with the prosecution authorities.

The main concerning trends in the sector include copy trading and signals, construction guarantee policies being issued by unregistered entities, deepfake scams, impersonations of financial services providers, and exploitation via social media platforms. The best gain is seen in the funeral parlour sector with the regularisation of the business of many funeral parlours and the decrease in investigations into unregistered over-the-counter product providers following enforcement actions in the previous year. Collaboration between the FSCA and the NPA has also led to significant successes.

The FSCA also collaborated on 45 matters with international counterparts and became a signatory to the International Organisation of Securities Commission’s (IOSCO) Enhanced Multilateral Memorandum of Understanding that aims to enhance the effectiveness of cross-border investigations and enforcement. Through this collaboration and cooperation with international counterparts as well as other regulatory authorities, the FSCA’s enforcement function effectively executes its mandate.

Find the full Regulatory Actions Report for 2023/2024 here.

You can check whether an entity or person is suitably authorised before any purchase or investment is made, by one of the following:

1) Toll-free number: 0800 110 443

2) Online search for authorised financial institution by license category: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-Entities-Persons.aspx

3) Online search for a financial institution that is an authorised FSP in terms of the FAIS Act: https://www.fsca.co.za/Fais/Search_FSP.htm