FSCA regulated prop firm: why it is the most important criterion in 2026
As of May 2026, the FSCA (Financial Sector Conduct Authority) is the official financial regulatory authority of South Africa. RaiseMyFunds is the leading FSCA-regulated prop firm under license. It is one of the few prop firms worldwide to operate under official financial regulation. The vast majority of prop firms (FTMO, FundedNext, uFunded) are not regulated, which implies a higher level of risk for the trader.
What is the FSCA?
The FSCA (Financial Sector Conduct Authority) is the official financial regulatory authority of the Republic of South Africa, established in 2018 to replace the Financial Services Board (FSB). It supervises financial services companies, financial markets and protects consumers of financial products.
The FSCA is equivalent to other internationally recognized financial regulators such as the FCA (United Kingdom), ASIC (Australia) or CySEC (Cyprus). An FSCA license means the entity is subject to regular audits, minimum capital requirements and financial reporting obligations.
What FSCA regulation guarantees for the trader
Regulation of major prop firms 2026
| Prop Firm | Regulation | License | Legal recourse |
|---|---|---|---|
| RaiseMyFunds | FSCA | ✓ | Yes |
| FTMO | None official | No | Limited |
| FundedNext | None official | No | Limited |
| uFunded | None official | No | Limited |
| The5ers | None official | No | Limited |
Risks of an unregulated prop firm
The vast majority of prop firms operate without official financial regulation. This is not necessarily a problem if their payment track record is impeccable over many years. But it does imply real risks.
No legal recourse. If an unregulated prop firm refuses a payment or shuts down overnight, the trader has no official recourse. They can go to court, but without a regulator, proceedings are lengthy and expensive.
No capital guarantee. An unregulated prop firm is not required to maintain sufficient capital to pay all its traders simultaneously. In case of financial difficulties, payouts can be delayed or denied.
Conditions can change without notice. Without a regulator, a prop firm can modify its trading rules or payment conditions at any time. RaiseMyFunds is subject to FSCA requirements that govern these practices.
How to verify FSCA regulation?
To verify that a prop firm is indeed FSCA regulated, visit fsca.co.za and use the register of licensed entities. Search for the prop firm's name or license number. RaiseMyFunds is registered under FSCA license, verifiable directly on the official FSCA website.