The FSCA Regulatory Actions Report for 2022/2023 period, released on 18 April, makes for some interesting reading.

To start with, it is highly beneficial to the financial industry, and society, that the FSCA publishes all enforcement sanctions and interventions on its website and through media releases.

A total of R100 644 300 administrative penalties were payable to The FSCA by 44 investigated parties. Most of the administrative penalties (R68 740 000) imposed relates to non-compliance with the FAIS Act. 

Most of the debarments were due to dishonest conduct while most suspensions (984) and withdrawals (420) of FSP licences relate to the non-submission of statutory returns and/or non-payment of levies; most of the debarments (210) involved dishonest conduct. 

The report contains various case studies that clearly explains some of the issues that were acted on, many of which needs clarity to avoid transgressions. For example, when does an FSP need an ODP license, what are the duties of a Key Person and confirming the duties of a board member of a retirement fund. There is also an important ruling on copy- or mirror trading, confirming that you need an FSP license, even if you are simply copy trading. Amongst others, there is also an interesting explanation of the R20m penalty levied on Markus Jooste for insider trading.

Overall, a highly informative and compulsory read for all FSPs.

Find the full report HERE

Download the Regulatory action report presentation HERE

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