FSCA Regulation: what is it and why it matters in 2026

What is the FSCA (Financial Sector Conduct Authority)?

The FSCA, or Financial Sector Conduct Authority, is the official financial regulator of the Republic of South Africa. Established in April 2018 under the Financial Sector Regulation Act (FSRA), it replaced the former Financial Services Board (FSB) in its role of supervising financial markets.

Based in Pretoria and Johannesburg, the FSCA's mandate covers the supervision of the entire South African financial services sector, including banks, insurance companies, investment funds, brokers, and proprietary trading firms (prop firms). The FSCA ensures that these entities operate transparently, responsibly, and in compliance with applicable legislation.

Its primary objective is consumer protection. In practical terms, the FSCA ensures that regulated companies maintain high standards of governance, financial soundness, and fair treatment of clients. Any entity wishing to offer financial services in South Africa must obtain a Financial Services Provider (FSP) licence from the FSCA.

The FSCA has extensive investigative and enforcement powers. It can impose fines, revoke licences, and even initiate criminal proceedings in cases of serious violations. This enforcement capacity makes it a credible and internationally respected regulator.

How the FSCA protects traders

For a trader using a broker or prop firm, FSCA regulation provides several concrete layers of protection. These guarantees are absent when working with an unregulated entity.

The FSCA also enforces strict rules on advertising and communications. A regulated entity cannot make unrealistic or misleading return promises. Every marketing communication must include appropriate risk warnings. These obligations protect beginner traders from scams and predatory practices.

Another often-overlooked advantage is identity verification (KYC) and anti-money laundering (AML) compliance. While these procedures may seem burdensome, they ensure the trading environment is secure and that trader funds are protected against fraudulent activities.

What the FSCA licence means for traders

FSCA licence #50506 is held by both RaiseMyFunds and RaiseFX, both based in Johannesburg, South Africa. This licence certifies that these entities are authorized to provide financial services under the direct supervision of the FSCA.

For traders, this licence means:

• Verifiable soundness. The company has met the FSCA's solvency, governance, and competence criteria to obtain its licence.
• Operational transparency. Trading conditions, fees, payout rules, and complaint handling procedures are overseen by the regulator.
• Ongoing protection. The licence is not permanent. The FSCA can suspend or revoke it if the company no longer meets regulatory requirements.
• Traceability. Licence #50506 can be verified at any time on the official FSCA register (fsca.co.za). Simply search by FSP number to confirm the licence status.

RaiseMyFunds uses this licence to offer prop trading services (Instant Funding, funded accounts from $50,000 to $400,000) within a regulated framework. RaiseFX, as a CFD/Forex broker, provides access to over 500 instruments with leverage up to 1:500 on the MT5 platform, also under this same FSCA licence.

How to verify a licence on the FSCA website

Verifying that a broker or prop firm is genuinely FSCA-regulated is a simple, free process. Here is the step-by-step procedure:

1. Visit the official FSCA website at fsca.co.za
2. Find the FSP Register (Financial Services Providers). Use the register's search function.
3. Enter the licence number (e.g., #50506 for RaiseMyFunds and RaiseFX) or the company name.
4. Review the details. The register displays the licence status (active, suspended, deregistered), authorized financial services, and entity information.

If a company claims to be FSCA-regulated but you cannot find its licence number in the official register, that is a major red flag. Never entrust your funds to an entity whose regulation cannot be independently verified.

Also check that the licence status shows "Active" rather than "Deregistered" or "Suspended." A revoked or suspended licence means the entity no longer meets the regulator's requirements.

FSCA vs FCA, CySEC, and ASIC: regulator comparison

The FSCA is often compared to other major international financial regulators. Here is an objective comparison of their key characteristics.

FSCA vs FCA. The UK's Financial Conduct Authority is considered one of the strictest regulators globally. The FSCA shares the same core principles: minimum capital, fund segregation, and consumer recourse. However, the FCA imposes more restrictive leverage caps (1:30 for retail) while the FSCA allows higher leverage, attracting experienced traders.

FSCA vs CySEC. The Cyprus Securities and Exchange Commission is popular among brokers due to the MiFID II European passport it offers. The FSCA does not provide this passport but imposes comparable capital and compliance requirements. CySEC's advantage is access to the Investor Compensation Fund (ICF) covering up to EUR 20,000 per client.

FSCA vs ASIC. The Australian Securities and Investments Commission is a highly respected regulator. Since 2021, ASIC has tightened CFD rules, limiting leverage to 1:30. The FSCA maintains a more flexible leverage framework while retaining strict fund protection requirements.

The key takeaway: a FSCA-regulated entity offers a level of protection far superior to that of an unregulated entity. The majority of prop firms (FTMO, FundedNext, The5ers) hold no licence from any official financial regulator.

Frequently asked questions