The FSCA publishes its latest regulatory action report

July 1, 2024
FSCA

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

The report aims to increase the visibility of the FSCA’s enforcement activities, prevent misconduct and raise awareness of regulatory requirements in the financial sector. It sets clear expectations for good conduct in the industry 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, the suspension of 1061 licences, the revocation of 75 licences and the imposition of penalties exceeding R943 million on 33 individuals. The report also details a number of cases that the FSCA fully investigated and referred to various enforcement agencies, including highly publicised cases. One notable case is the prosecution of Mr Craig Warriner, who received a successful 25-year sentence for fraud and unregistered financial services business, after successfully cooperating with enforcement agencies.

The main worrying trends in the sector include copy and signal trading, construction warranty policies issued by unregistered entities, deepfake scams, impersonation of financial service providers and exploitation via social media platforms. The biggest gain is seen in the funeral home sector with the regulation of many funeral homes and a decline in the number of investigations into unregistered over-the-counter suppliers following enforcement actions in the previous year. Collaboration between FSCA and NPA has also led to significant successes.

The FSCA has also cooperated with international counterparts on 45 cases and has become a signatory to the International Organization of Securities Commissions (IOSCO) Enhanced Multilateral Memorandum of Understanding, which aims to enhance the effectiveness of cross-border investigations and enforcement. Through this cooperation, and through cooperation with international counterparts and other regulatory authorities, the FSCA’s enforcement function effectively delivers on its mandate.

The full 2023/2024 regulatory activity report can be found here.

Before making a purchase or investment, you can check whether an entity or person is eligible by using one of the following methods:

1) Freephone: 0800 110 443

2) Online search for an 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 authorized FSP under the FAIS Act: https://www.fsca.co.za/Fais/Search_FSP.htm