How you can find out if the Financial service provider(FSP) you’re working with is a scam !
What is an FSP ?
FSP stands for Financial Service provider. In South Africa in order to give advice or provide an intermediary service of a financial nature, you have to be a licensed FSP.
The approval of license’s is determined by the Financial Sector Conduct Authority(FSCA). This isn’t an easy process and requires the applicant meeting various criteria in order to be approved. For example , a fit and proper Key individual(KI) and fit and proper representatives(Rep) , record keeping requirements , Capital and liquidity requirements .
Unlike a drivers license , the licensee has to demonstrate constant compliance with the conditions of a license. Simply put , if we had to do this for a drivers license we would have to demonstrate everyday that we are able to parallel park , and if on one particular day we aren’t able to parallel park , we lose our license.
How do we know if the FSP we are working with is legit ?
Using the link – https://www.fsca.co.za/Fais/Search_FSP.htm
You are able to search via the FSCA using any of the methods below
Once you have found the FSP you are searching for . You will be able to see various information such as the FSP’s Name , KI , Reps as well as the classes of business they are authorised to operate in. If the FSP , you are working with does not show up , They are NOT authorised.
Here’s an example of The FSP I work for by searching the FSP Number
If we click ‘Details’ the following page will come up , click on any of the Red headings to expand and display information.
Let’s try ‘Products Approved’
This is a very simple and easy way for you to ensure you know who you are dealing with and that they are authorised to be dealing in that product.
Liadh’s Tip
ALL AUTHORISED FSP’S MUST MAKE REFERENCE TO THEIR FSP NUMBER IN ANY ADVERTISING AS PER FSCA REGULATION
Stay tuned for the next part of the series where I will show you how to find notices and warnings and how you can make a compliant
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