South Africa

South Africa boasts a well-developed financial market and serves as a strategic entry point for accessing the rapidly growing African FX and CFDs market.

South Africa has a long-standing regulatory framework for financial services, providing a level of stability and familiarity for international brokers. The Financial Sector Conduct Authority (FSCA) enforces comprehensive regulations for FX and CFDs brokers, ensuring investor protection and market integrity. The FSCA regulations place a strong emphasis on client protection, which can be a positive for attracting trust from South African investors.

Developed Infrastructure: South Africa offers a well-developed financial infrastructure, including reliable communication networks and access to various financial services.
Skilled Workforce: South Africa has a growing pool of skilled professionals in the financial services sector.
Transparency Initiatives: The FSCA has undertaken initiatives to improve transparency and communication with market participants.

Get in touch with us to learn more about Heaving a FX CFD license in Africa

Jurisdiction: South Africa
Regulator: South Africa Financial Sector Conduct Authority (FSCA)
License Name: FSP Category I; Over-the-Counter Derivatives Provider (ODP)
Products Allowed (CFD on all/certain assets): FX and CFDs
Activities Allowed (Broker/MM): Broker only; Market Maker
Passporting: N/A
Leverage Limitations: None
Structure requirements (#shareholders / director/officers, MLRO): Local company; Local Key Individual (KI) (full time employee), Local Bank, Local Compliance Services Provider (outsourced);
Basic requirements (business plan, website. demands from UBO, professional background: Detailed business plan incl. 3 years financial forecast; UBO needs to be of good repute; UBO has no specific requirements in terms of experience, education or financial soundness / source of funds; KI has strict requirements in terms of education minimum experience and regulatory exams and certifications he must obtain in order to act as KI for FX/CFDs operation.
Local Physical Presence (Local Office and Local Staff): Local Key Individual, Local bank account and local compliance servcies provider (outsourced) are mandatory.
Insurance: Professional liability insurance is mandatory
Clients' Funds Segregation: Mandatory (must open 2 bank accounts - 1 Corporate and 1 for clients' funds)
Corporate Income Tax Rate: 0-27% depending on different levels of income
Minimum Capital Requirement: No minimum capital amount is stated in the laws and regulation.
Time Frame for License Issuance (as of submission): 3-6 Months; 4-8 Months
Regulatory leniency level (basic, intermediate, complex): Basic; Complex
License Validity: No expiry date
Reporting Frequency (Monthly/Quarterly/Annualy): AML Reports; Annual Audited Financial Statements

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