Forex License in South Africa

Benefits of the South Africa forex license

South Africa’s forex license offers several compelling advantages for brokers and financial firms:

• Strong credibility and investor trust. The FSCA is known for rigorous oversight and aligning with international standards. Holding the FSCA license immediately boosts a broker’s legitimacy in the eyes of clients, banks, and payment providers. It shows that the firm has met stringent fit-and-proper tests and adheres to high standards of conduct. This credibility can be a key differentiator when attracting clients who might be wary of unregulated or lightly regulated brokers. In the African context, the FSCA is arguably the most respected regulator, which can reassure institutional partners and facilitate banking relationships.
• Access to a large and growing market. An FSCA license opens the door to South Africa’s investor base – one of the largest retail trading markets in Africa – as well as to other regions where an FSCA-regulated broker is welcomed. Licensed forex providers can openly advertise and solicit business in South Africa and can participate in partnerships or white-label deals that require a licensed status. Furthermore, meeting FSCA standards positions the broker to expand into other African countries, leveraging South Africa’s reputation as a financial gateway. In general, being based in South Africa with a local license can help a broker capture the growing demand for forex trading across emerging markets where consumers are increasingly cautious about regulator credibility.
• Comprehensive scope (all-in-one license). As noted, the FSP license covers a wide range of financial products and services under one authorization. This means a company doesn’t need to apply for separate licenses for forex, CFDs, asset management, or crypto services – it can include multiple endorsements in a single FSCA license. For example, a broker can run a forex trading platform, offer advisory services, and later add cryptocurrency trading, all under the same regulatory roof (with necessary approvals). This flexibility allows businesses to diversify offerings and revenue streams easily, compared to jurisdictions where each activity (say, forex vs. securities trading) would require distinct licenses.
• Relatively quick process and moderate costs. Compared to obtaining a license in major financial centers (US, UK, EU), the South African license process is faster and less costly. The application processing time can be just a few months, versus potentially a year or more for some EU licenses. Government fees (on the order of a couple thousand dollars) are very reasonable, and required capital (often around $300k–$600k) is lower than in many jurisdictions that mandate millions in capital. There are no hefty upfront contributions to compensation funds or similar charges that some regulators impose. In summary, South Africa offers a streamlined, cost-effective path to regulation for firms that can meet the requirements – “high quality at relatively low cost.”
• Tax and financial infrastructure advantages. Operating under the FSCA license situates a company in a country with a developed financial infrastructure: reliable banking, professional services (legal, accounting, compliance consultants), and a stable legal system. South Africa’s corporate tax rate (27%) is reasonable and there are no additional gambling or turnover taxes on brokerage income. Moreover, South Africa has a wide network of double taxation agreements, which can help reduce withholding taxes on cross-border payments and improve overall tax efficiency for international businesses. The country’s time zone (GMT+2) aligns well with European markets, which is beneficial for trading operations and support services. All these factors make South Africa an attractive base for running a global brokerage business.
• Innovation and expansion opportunities. With the regulatory framework increasingly accommodating new trends (e.g. crypto assets now under FSCA oversight), a licensed company can innovate knowing the regulator provides a pathway for new products rather than outright bans. The FSCA license can thus be a springboard for growth – licensed brokers can launch new trading instruments, form partnerships with banks or fintech firms, and even seek dual licensing in other countries down the line, using their South African compliance track record as a foundation.

Overall, the FSCA license marries the benefits of a well-regulated environment with the practical needs of a competitive brokerage, making it a favored choice for firms aiming to be responsible yet agile in the forex industry.

Disadvantages of the South Africa forex license

Despite its many strengths, the South African forex license comes with certain challenges or downsides that applicants should consider:

• High compliance bar and operational commitments. South Africa’s regulatory requirements are strict – arguably on par with European standards – which can be demanding for smaller startups. The FSCA expects detailed documentation, internal controls, and ongoing compliance reporting. Meeting the minimum capital (often several million rand) and maintaining that capital buffer can strain companies with limited funding. Also, the need for local offices, local personnel (qualified Key Individuals, etc.), and annual audits means higher operating costs. In short, running an FSCA-licensed brokerage is not a light undertaking; the days of “easy” or nominal regulation (as sometimes perceived with offshore jurisdictions) do not apply here. For very lean operations, the regulatory overhead in South Africa might be prohibitive.
• Not a substitute for top-tier market licenses. While well-respected regionally, the FSCA license is not globally “passported.” It doesn’t grant automatic entry into heavily regulated markets. Brokers who aspire to serve clients in North America, Western Europe, Japan, etc. will still need to obtain additional licenses in those jurisdictions. Moreover, some conservative investors or institutions might still prefer brokers regulated by a Tier-1 authority (like the UK’s FCA or Australia’s ASIC) for added assurance. Thus, the FSCA license can sometimes be viewed as a mid-tier license: stronger than a purely offshore license, but not as prestigious as a G-7 country license. Certain payment processors or banks might conduct extra due diligence or impose limits until a longer compliance history is established.
• Intensive oversight and potential penalties. Gaining the license is only the beginning – the FSCA actively supervises licensees. Firms must submit regular financial reports, compliance reports, and are subject to periodic inspections. The regulator has shown it will enforce rules rigorously, including issuing fines or even revoking licenses for misconduct. For example, in recent enforcement actions the FSCA fined a broker for operating as a derivative provider without proper authorization and imposed penalties on individuals for offering copy trading without a license. This level of oversight means there is little room for error – compliance failures (even inadvertent ones) can result in public enforcement action, which could damage a company’s reputation. By contrast, some offshore jurisdictions may have a lighter touch day-to-day. In South Africa, one must be prepared for a true partnership with a proactive regulator, which can be challenging if a firm’s compliance capabilities are weak.
• Local presence requirements. While we listed local substance as a benefit (for credibility), it also means greater commitment and complexity. The need to incorporate locally and possibly appoint local directors or hire local compliance officers introduces administrative complexity and costs. Foreign owners may need to travel to South Africa periodically (though not formally required by law) to establish bank accounts or meet regulators. South Africa’s exchange control regulations, while eased in recent years, still require certain reporting for moving funds abroad. These factors add layers that a purely offshore setup wouldn’t face. Thus, the South African license is not as “plug-and-play” – you are investing in a full-fledged local operation.
• Evolving regulations and adjustments. South Africa’s financial laws are undergoing evolution, such as the upcoming Conduct of Financial Institutions (COFI) Act which will eventually replace FAIS to streamline financial sector laws. This means the regulatory landscape may shift, requiring licensees to adapt to new rules or higher standards in the coming years. Already, in late 2024 the FSCA increased some fees and levies by about 6%, and as new sectors (like crypto) come under regulation, additional compliance burden can emerge. Staying abreast of these changes is crucial – for some companies, this dynamism in rules can be seen as a disadvantage compared to more static regulatory regimes.

Types of South Africa forex license

Unlike a simple binary of operator vs supplier licenses (as in some gambling regimes), South Africa categorizes financial services providers by the nature of services they offer. The FSCA FSP licenses are divided into several categories, of which the most relevant for forex businesses are Category I and Category II:

• Category I FSP (Advisory and Intermediary Services): This is the basic license for providing financial advice or acting as an intermediary without discretion. A Category I forex broker can execute clients’ orders in forex and CFDs and give trading advice, but it cannot trade on behalf of clients without their instruction (no discretionary mandate). Most retail forex brokers fall in Category I. Within Category I, the license will specify sub-categories of financial products (e.g. “Derivative Instruments” covers OTC forex and CFDs, “Securities and Instruments” covers shares, etc.). A Category I FSP that deals in derivatives must also comply with ODP requirements if it is the counterparty to client trades.
• Category II FSP (Discretionary FSP): This license allows portfolio management or trading on a discretionary basis. Essentially, if a firm is managing client funds or accounts (making trading decisions for the client), it needs Category II. A forex asset manager running a managed account service, or a copy-trading program where trades are auto-executed by the firm, would come under Category II (and indeed, the FSCA has penalized copy-trading setups that operated without a Cat II license). Category II licensees can also hold client funds in fiduciary capacity and have authority to make investment choices, which is why the requirements (capital, experience, professional indemnity insurance, etc.) can be higher than for Cat I. Like Cat I, the Cat II license will list what product types (forex, securities, etc.) the firm is authorized to manage.
• Category IIA (Hedge Fund FSP): This is a subset of Cat II introduced for hedge fund managers specifically. If a forex trading firm pools client funds in a hedge fund structure or manages a hedge fund that trades forex/derivatives, Cat IIA may apply. It carries additional requirements aligned with hedge fund regulations. For most standard brokerage businesses, Cat IIA is not needed, but it’s worth noting if you plan to run a forex fund.
• Category III (Administrative FSP): This is for firms that operate investment administration platforms, often called LISPs (Linked Investment Service Providers). It involves handling client assets and administrative functions (like unit trust platforms). This category is generally not applicable to typical forex brokers, as it’s more for investment product platforms.
• Category IV (Assistance Business FSP): A less common category, meant for intermediaries assisting with funeral policies or friendly society benefits (niche financial products). Not relevant to forex trading.

In the context of “forex license”, usually one means Category I or Category II FSP with authorization for derivative instruments (forex/CFDs). Many brokers start with Category I (execution-only brokerage) and later add Category II if they want to offer managed portfolios or advisory mandates. It’s possible for a company to hold multiple categories simultaneously if needed.

Over-The-Counter Derivatives Provider (ODP): In addition to the FSP categories, the ODP license is a crucial component for forex brokers. Introduced under regulations to the Financial Markets Act in 2018, an ODP authorization is required for any entity that acts as the counterparty in OTC derivatives with clients. Practically, this means if your brokerage is market-making or issuing CFDs/forex contracts to clients (even if you hedge them back-to-back), the FSCA considers you an OTC Derivative Provider. The ODP license involves its own application (often done alongside the FSP application) and imposes certain prudential requirements and reporting obligations. Initially, many brokers operated with just an FSP license and no ODP, but the FSCA has since enforced the rule – e.g., fining firms that only had Category I but were in fact acting as ODPs. As of 2023, all active CFD/forex brokers in South Africa have either obtained ODP authorization or are in the process of doing so. Notably, ODP licenses for non-bank firms are issued by the FSCA as well, under the Financial Markets Act authority. When planning your licensing, you should budget time and resources for the ODP requirements if you’ll be a trading counterparty.

Legacy considerations: Historically, South Africa’s financial licensing was handled by the Financial Services Board (FSB) before the FSCA took over in 2018. There wasn’t a “sublicense” system or anything akin to the Curacao gambling master licenses – each FSP license has always been granted by the regulator directly. So there are no legacy sub-license structures to worry about. The main transitional issue in recent times was the grace period given for existing derivative brokers to apply for ODP licenses by early 2019 (later extended), and for crypto service providers to apply by November 2023. Those transitions aside, any new entrant now simply applies for the appropriate FSP category (and ODP if needed) straight with the FSCA.

Requirements for obtaining a South African forex license

The FSCA imposes a comprehensive set of requirements on applicants, designed to ensure only fit and proper businesses enter the market. Key requirements include:

• Local incorporation and structure: You must register a company in South Africa (typically a Private Company – Pty Ltd). A local registered office address is required, and the company must appoint the necessary officers. At least one director or senior manager will need to be designated as the Key Individual for the license – this person is responsible for overseeing the financial services and compliance. While the directors/owners can be foreign, having a South African-resident compliance manager or director greatly helps in meeting the “mind and management” expectations. The corporate governance structure should be robust, with clear roles (directors, compliance officer, risk officer as needed) and internal controls.
• Fit-and-proper criteria (owners and managers): All controlling persons (shareholders with ≥ 20% stake), directors, key individuals, and representatives will undergo FSCA’s fit and proper assessment. This includes criminal background checks, credit checks, and reference checks. Individuals must have a record of honesty and integrity (no fraud/bankruptcy history). They also need to demonstrate competence: generally, management should have relevant experience in finance or investments, and certain regulatory exams must be passed. Specifically, Key Individuals must pass the FSCA’s regulatory examinations (Level 1 exams like RE1 for key individuals of Category I, and/or RE3 for Category II; plus RE5 for representatives). These exams test knowledge of the FAIS Act and duties of FSPs. In addition, key personnel should hold relevant qualifications (for example, a finance degree or trading qualifications) or have ample work experience in the field. The FSCA will also review the applicant firm’s shareholding to ensure the ownership structure is transparent and acceptable (they may reject applications if owners have suspicious backgrounds or if the structure is overly complex with no clear beneficial owners).
• Financial soundness (capital and liquidity): The applicant must prove it has sufficient financial resources to operate the business and buffer risks. Formally, the requirement is that the company’s current assets exceed current liabilities on an ongoing basis (solvency). There isn’t a fixed capital amount mandated for all (unlike, say, EU brokers needing €730k), but in practice the FSCA expects to see a credible level of capital. As a guideline, having at least ZAR 5–10 million (approximately $300k–$600k) in unencumbered capital is advisable. The application must include financial projections and evidence of funding (e.g. bank statements showing the capital is available). If you’re also applying for an ODP license, be prepared for enhanced prudential standards – the Conduct Standard for ODPs requires demonstrating how you will meet margin and capital requirements for your derivative positions. Additionally, the FSCA may ask for details on how client funds will be segregated and safeguarded (e.g. in which bank account, with what controls).
• Business plan and operational arrangements: A detailed business plan is a must. This document should describe the business model, target market, marketing plan, organizational structure, projected financials for 3–5 years, and how the company will generate revenue. The plan should specifically address the forex services to be offered – e.g. what platforms will be used (MT4/MT5 or others), what products (major currency pairs, crypto CFDs, etc.), what the fee structure or spreads look like, and how the brokerage will manage risks (market risk, liquidity risk, etc.). Operational ability is a key part of the FSCA’s fit and proper test – the firm must show it has the systems, resources, and procedures to run the business effectively. This includes having trading infrastructure in place, an IT framework with cybersecurity measures (often an IT Risk/Cybersecurity policy is required), and a business continuity plan (disaster recovery arrangements). If certain functions will be outsourced (like platform technology, call center, or back-office operations), the FSCA will want to see outsourcing agreements and how oversight of those providers will be handled.
• Internal policies and manuals: Applicants need to draft and submit a range of policy documents as part of the application pack. These typically include:
  • Risk Management policy: outlining how the firm identifies and manages various risks (market risk, credit risk, operational risk, etc.).
  • Compliance Manual: detailing procedures to comply with FAIS and FICA (Financial Intelligence Centre Act) requirements, including reporting structures and the role of the compliance officer.
  • Anti-Money Laundering (AML) and Counter-Terrorist Financing policy: describing KYC procedures, ongoing monitoring, record-keeping, reporting of suspicious transactions, etc..
  • Client onboarding and due diligence procedures: how the firm will vet clients’ identity, assess suitability (if giving advice), and enforce age/investor status restrictions.
  • Client money handling policy: explaining how client funds will be segregated from company funds, and reconciliation processes (note: under FAIS, client monies are typically held in a trust account until used for trading).
  • Conflict of interest policy: per FAIS requirements, showing how the firm will avoid or disclose any conflicts between the company’s interests and clients’ interests.
  • Complaints resolution policy: required by FAIS to ensure client complaints are handled promptly and fairly.
  • Order execution policy (if applicable): how the firm ensures best execution of client orders and fair pricing.
• These documents not only demonstrate preparedness but also will govern the day-to-day operations once licensed. The FSCA reviews them to ensure they meet regulatory criteria and are tailored to the applicant’s business (boilerplate policies that don’t match the firm’s operations can lead to further queries or delays).
• Professional indemnity insurance: Brokers are required to carry insurance (PI insurance) to protect clients against losses arising from negligence, errors, or omissions by the firm. The FSCA will expect to see that a policy either is in place or will be in place upon licensing. The coverage amount can depend on the size of business, but often a minimum cover (e.g. ZAR 1 million or more) is needed, and it should cover the specific activities (forex trading, advisory, etc.). This insurance ensures that if the broker causes a client financial harm through misconduct or mistakes, there’s a financial remedy available.
• Appointment of key personnel: At minimum, the firm needs to appoint:
  • Key Individual(s): These are the persons registered with FSCA as responsible for managing and overseeing the financial services. They must meet experience and exam requirements and be approved by FSCA. They effectively are the equivalent of licensed officers on the record.
  • Representative(s): These are the personnel who will actually provide the advisory or intermediary service to clients (for instance, if you have account managers or sales traders). In a small brokerage, a Key Individual can also act as a representative. Representatives must also be fit and proper (though their exam requirement is typically RE5).
  • Compliance Officer: If the firm is not a one-person operation, an independent compliance officer (who is approved by FSCA) should be appointed. Category I FSPs without client assets can sometimes be exempt from having a compliance officer, but generally for forex brokers (especially dealing in derivatives), the FSCA will require a dedicated compliance officer. This individual can be an external consultant (several firms specialize in providing compliance officer services to FSPs). The compliance officer will submit regular compliance reports to FSCA and ensure ongoing adherence to regulations.
  • Auditor: All FSPs that hold or control client funds or assets must have annual financial statements audited by an external auditor. Even if not mandated, having an auditor is recommended. The auditor doesn’t need to be pre-approved by FSCA at application, but the firm should plan for audited financials each year.
• Regulatory examinations and competency: As mentioned, key individuals and representatives must pass the relevant Regulatory Examinations (RE). Typically:
  • RE1: Key Individuals of all FSPs (tests knowledge of FAIS and duties of managing an FSP).
  • RE3: Key Individuals of Category II (additional aspects for discretionary FSPs).
  • RE5: Representatives of all FSPs (tests basic FAIS knowledge for client-facing reps).
• The application will ask for proof of exam passes or at least proof of exam registration. In addition, the FSCA may conduct an interview or further assessment of the Key Individual’s knowledge and capability during the process. Professional qualifications (like CFA, or other financial certifications) and prior work experience in forex/trading should be highlighted in the application to strengthen the case that management is competent.
• Fit and proper (continued): Finally, the FAIS regulations have honesty and integrity requirements. Each key person will typically submit affidavits or declarations about their history (disclosing any criminal records, bankruptcies, regulatory sanctions, etc.). Police clearance certificates and credit bureau reports may be required. Any adverse information here can derail an application, so it’s crucial that the people behind the application have clean records. The FSCA wants to ensure that those entrusted with client money are trustworthy and that the business will be run ethically.

Meeting all these requirements results in a voluminous application dossier. Many firms engage specialized consultants or lawyers (like SBSB Fintech Lawyers or others) to help prepare the submission, given the level of detail and local knowledge needed. The process forces an applicant to effectively build the company’s framework upfront – by the time you apply, you should have the company formed, key staff identified and qualified, systems in place or at least lined up, and every policy and procedure thought through.

Costs & taxes

Obtaining and maintaining a South African forex license involves several cost components. Below is a breakdown of typical costs and the tax environment:

• Regulatory fees: The upfront application fee payable to FSCA is relatively low – roughly ZAR 10k–20k (a few hundred to a couple thousand US dollars, depending on the categories applied for). For instance, a Category I application might be around R15,000 (≈$850), while adding Category II could bring it near R33,000 (≈$1,900). These fees are to process the licensing and the required background checks. Once licensed, there are annual regulatory levies. The annual levy for an FSP is calculated based on a formula involving the firm’s revenue and number of representatives. As an example, a small Category I broker might pay on the order of R20,000–R30,000 annually (±$1.5k) as a levy, whereas larger firms pay more. These levies fund the FSCA’s supervisory work. The FSCA periodically adjusts the levy scales (e.g., a proposed 6% increase for 2024).
• Professional and setup costs: These are often more significant than the government fees. Key expenses include:
  • Company incorporation: Setting up a Pty Ltd in South Africa (if done via attorneys or service providers) might cost a few hundred dollars. This is minor in the scheme of things.
  • Licensing advisory services: Many firms hire consultants to prepare the application, draft all policies, and liaise with FSCA. Depending on the complexity, such services can range from $15,000 up to $50,000. It’s a one-time investment to ensure the application is successful.
  • Local directors or personnel: If you need to appoint a local director or hire a local compliance officer, there will be salary or retainer costs. A part-time external compliance officer might charge a monthly fee (say R10k–R20k, $600–$1,200) for overseeing compliance. A full-time experienced compliance officer or director could cost significantly more annually.
  • Office and infrastructure: Renting a small office or co-working space in Johannesburg or Cape Town, for example, will be a monthly expense. There’s also IT infrastructure costs (servers for the trading platform if hosted, software licenses, etc.). Some brokers choose to host trading servers abroad for execution speed but maintain back-office servers locally for FSCA access.
  • Regulatory exams and training: Each regulatory exam costs around R1,300 (~$70) per sitting. Plus any study courses or materials for key individuals and reps.
  • Insurance premium: Professional indemnity insurance premiums depend on coverage amount and the firm’s risk profile. Small brokers might pay a few thousand dollars per year for the required coverage.
  • Auditor and accounting: Yearly audit fees and ongoing bookkeeping – perhaps $5,000+ per year for a smaller firm’s audit.
• In total, a company should anticipate the first-year setup cost (including capital allocation, fees, and professional costs) to be on the order of tens of thousands of dollars. A ballpark figure commonly cited is around $50,000–$100,000 to get fully set up and through licensing (not including the capital you need to hold ready).
• Capital to reserve: While not a fee, the need to commit operational capital is a cost in the sense that money will be tied up in the company to meet regulatory expectations. If you allocate, say, ZAR 8 million (midpoint of the 5–10m typical range) as capital, that’s roughly $450,000 that should remain largely unencumbered to support the business. These funds would typically cover initial losses, startup expenses, and act as a cushion for any trading liabilities. It’s prudent to have a solid financial buffer because the FSCA will monitor financial statements and could raise concern if a firm is under-capitalized or slipping into financial difficulty.
• Taxes: As a licensed South African company, you’ll be subject to South African taxes:
  • Corporate income tax: Currently 27% of net profit (note: as of 2022, the rate was reduced from 28% to 27%). This is reasonably competitive internationally, though higher than pure offshore zero-tax jurisdictions. However, South Africa’s network of double taxation agreements can prevent you from being taxed twice on the same income if you have parent companies or investors elsewhere.
  • Withholding taxes: Dividends paid to foreign shareholders incur a 20% withholding tax, unless reduced by a treaty. Interest and royalties have their own rates (15% and 15% typically, again subject to treaties).
  • VAT: Financial services are often exempt from VAT in South Africa. Forex brokerage services to non-South African clients might be zero-rated. It’s important to get tax advice, but generally commissions/spreads earned from trading might not attract VAT.
  • No transaction tax on trades: South Africa does not levy a specific transaction tax on forex or CFD trades. (Some countries have a financial transaction tax or gaming duty – SA does not for forex trading.)
  • Exchange controls: South Africa has exchange control rules, but they mostly apply to residents sending money out. A licensed FSP handling client funds (especially if clients are resident) will need to adhere to any relevant exchange control reporting. Profits can be remitted abroad (e.g. paying dividends to a foreign parent) but must go through authorized dealer banks with the proper documentation.

Process for obtaining a forex license in South Africa

Getting an FSCA license is a multi-stage process that can be summarized in a series of steps. Here is an overview of the typical licensing process, from preparation to approval:

1. Preliminary planning and feasibility: Begin by assessing that you meet the criteria (see Requirements section) and decide on the exact license scope you need (Category I vs II, etc.). It’s wise to consult with a legal advisor or compliance consultant in this early phase. They can provide a checklist of documents and help you understand the timeline. Typically, from project start to license approval can take anywhere from 4 months on the very fast end (if everything is in order) to 6–8 months (or more) for more complex cases. Setting realistic timelines and budgeting for the process happens in this step.
2. Company incorporation in South Africa: If not already done, you must register a local company. This involves choosing a company name, preparing incorporation documents (Memorandum of Incorporation), and registering with the Companies and Intellectual Property Commission (CIPC). You’ll also obtain a company tax number from SARS. Incorporation can be done in a couple of weeks. At least one director is required (who can be foreign or local), and you’ll need a local registered address. This step lays the legal foundation for the license – the FSP license will be issued to this entity.
3. Appointment of key personnel and preparation for exams: Identify who will be the Key Individual(s) and Representatives for the license. Have them register for and complete the relevant regulatory examinations (RE) early, since passing these is mandatory before the license is granted. While they study for exams, you can concurrently work on documentation. If you need a local compliance officer, you might engage one around this stage so they can assist with drafting compliance documents.
4. Gathering documentation: This is often the lengthiest part. Collect and prepare all required documents, such as:
   • Certified copies of IDs/passports of directors, shareholders, key individuals.
   • Proof of qualifications and CVs detailing experience in financial services.
   • Police clearance certificates for key persons (to prove clean criminal record).
   • Financial statements or net worth statements of the company or individual shareholders (FSCA may want to see sources of funds).
   • The full set of internal policies and manuals (AML, risk management, etc. as described earlier).
   • A detailed business plan and financial projections.
   • Proof of capital (e.g. bank account statements showing the funds available).
   • Draft client-facing documents (like client agreement, risk disclosures) as the FSCA might want to review how you will contract with clients.
   • If applicable, ODP-specific documents (like an IT framework and cybersecurity report, per ODP requirements, and any model-specific disclosures).
     This stage may involve back-and-forth with advisors to fine-tune the documents to meet FSCA’s expected standards.
5. Submission of the application: The FSCA uses an online e-portal for FAIS license applications. You will fill out the application form, which includes numerous sections capturing details of the business, and upload all supporting documents. The application form will also ask for information such as:
   • Categories and sub-categories of financial products you seek authorization for.
   • Details of Key Individuals and Representatives (including their ID numbers, exam results, work history).
   • Shareholding structure (with a diagram if complex).
   • Compliance arrangements (who is the compliance officer, etc.).
   • Financial info like capital amounts and anticipated revenue.
     Once everything is attached, the application fee is paid (online or via EFT referencing your application number). After payment, the application officially enters the FSCA’s queue.
6. FSCA review and feedback: The regulator will acknowledge the application and assign it to an analyst in the Registrations Department. The due diligence then begins. They will verify exam passes, check criminal records, and review each document. It’s common to receive an initial feedback letter or email requesting additional information or clarifications. For example, FSCA might ask for clarification on business model details, require tweaks to a policy document, or point out missing information. They may also schedule an interview or meeting – often the FSCA meets with the proposed Key Individual to assess their understanding of regulatory obligations and the business plan. It’s important to respond promptly and thoroughly to any queries. This phase can involve multiple rounds of questions. According to some reports, the FSCA’s turnaround can be quite fast (several weeks) if the application is high quality, but if there are issues, the correspondence can extend over a few months. Staying proactive and maintaining good communication (possibly via your compliance advisor) is key.
7. Approval in principle: Once the FSCA is satisfied, they will inform you that the license is approved subject to final steps. They may send an approval letter confirming the categories of license granted. At this stage, they will assign a license number (FSP number). You might need to pay the first annual levy or any outstanding fees at this point. If you haven’t already, you’ll also need to finalize things like the professional indemnity insurance cover note and any other pre-conditions. In some cases, the FSCA might grant approval but require certain things to be in place within a set time (for instance, they might grant the license on condition that within 3 months you submit proof of an additional local director appointment, etc., though this is not common).
8. Receipt of the FSP license certificate: After formalities, the FSCA issues the license certificate (now often provided electronically). This certificate will state your FSP number, the name of the entity, and the categories of financial service and product for which you are licensed. Congratulations – at this point you are an authorized FSP and can legally begin offering the services! The details of your license will also be added to the FSCA’s public register of authorized financial services providers (so clients can verify your firm by name or number on the FSCA website).
9. Post-licensing setup (going live): With the license in hand, you can finalize operational launch: open a client trust bank account (South African banks will ask for the FSP license to open the statutory client accounts), integrate payment gateways, and deploy your trading platform live for clients. If you held off any marketing until official approval, you can now start advertising as a licensed broker. The FSCA does not mandate a specific “sandbox” period – you can onboard clients as soon as you are ready. However, you must ensure all your internal processes are working as described in your application because from day one of operations you’re expected to comply fully with the FAIS Code of Conduct and all other obligations.
10. Final steps and ongoing compliance: Typically, the FSCA will schedule an onsite (or virtual) inspection within the first 12–18 months of a new license being granted. This early review checks that the firm indeed has implemented what it said it would (for example, verifying that client funds are segregated, checking some KYC files, etc.). It’s crucial to prepare for this and treat it seriously. Meanwhile, you should diarize all upcoming reporting deadlines (see next section) and possibly consider joining industry bodies or attending FSCA briefings to stay updated on any regulatory changes.

Ongoing maintenance of your forex license

Once you have the FSCA license, the work isn’t over – a critical aspect is ongoing compliance and maintenance of the license. South Africa expects FSPs to continuously meet standards and to keep the regulator informed. Key ongoing obligations include:

• Regular reporting to FSCA: Licensed FSPs must submit periodic reports. Generally, annual financial statements are to be provided to the FSCA within a specified time after year-end (audited, in the case of an FSP that holds client money). In addition, there is an annual compliance report that the Key Individual or Compliance Officer must file, typically covering adherence to FAIS and FICA (for example, confirming that you maintained client asset segregation, that you have conducted the required compliance training, etc.). The exact reports and their due dates are often listed in FSCA communications upon licensing. Maintaining a compliance calendar is highly recommended so that no deadline is missed. Late submissions or failure to submit can result in penalties or at least a slap on the wrist from the regulator.
• Financial soundness and capital monitoring: The requirement to remain solvent (assets > liabilities) is continuous. If at any point the company’s financial position deteriorates, you may need to inform FSCA. Similarly, if you planned to always have, say, R5 million buffer but then you incur losses that eat into that, you must still ensure liquidity and capital adequacy. FSCA might require an auditor’s confirmation of capital adequacy annually. Also, any material changes in financial forecasts should be evaluated against your capital – prudent management would be to avoid heavy dividend payouts that could undercapitalize the company.
• Compliance officer and internal audits: If you have an external compliance officer, they will conduct monitoring throughout the year. They might do quarterly checks of client files or trades, and ultimately compile the annual compliance report. Additionally, some FSPs opt to have an independent internal audit or risk assessment periodically, especially as they grow. The FSCA doesn’t mandate internal audits for all, but it expects that management regularly review the effectiveness of controls. You should also update your policies and procedures whenever regulations change or if you expand services. For example, if new AML guidelines are issued or a new risk (like cyber risk) emerges, updating the relevant policy keeps you in line with best practices.
• Ongoing training and competence: The licensed individuals (key individuals and reps) must meet Continuous Professional Development (CPD) requirements under FAIS. Each year, they need to complete a certain number of hours of relevant training and maintain records of this. This ensures skills and knowledge remain up to date. Also, if you hire new representatives, you must ensure they are either already qualified (passed RE5, etc.) or get them trained and qualified within the allowed time. All such appointments or terminations of reps must be updated on the FSCA’s central register by informing the regulator (there’s an online system to add or remove representatives under your FSP license).
• Changes in business or structure: The FSCA must be notified and often pre-approve material changes. Such changes include:
  • Change of ownership: If you are selling the company or if a new shareholder is acquiring a significant stake, FSCA approval is required prior to the change. They will want to vet the new shareholder just like in the initial application.
  • Change of Key Individuals: If your original key individual resigns or is replaced, you need to apply for approval of the new key individual (with their credentials and exam passes). It’s wise to always have at least two approved Key Individuals, so that if one leaves, your operations can continue without falling out of compliance.
  • Adding new products or services: Let’s say you were licensed for derivatives and want to add securities trading, or you want to start offering investment advisory in addition to brokerage – you’d have to apply for a variation of license to include those additional product categories. Similarly, launching a crypto trading service under your FSP license would require getting the crypto asset approval (currently under the existing license via exemption, until formal licensing for crypto is fully implemented).
  • Change of address or contact details: Even something as simple as moving offices or changing your company name must be reported to FSCA so they can update your license record.
• Essentially, the license conditions stipulate that the regulator be kept informed of anything that a reasonable regulator would want to know to reassess your fit-and-proper status. Non-disclosure of changes is a common pitfall for some; for example, failing to tell FSCA about a change of directors can lead to regulatory action if discovered.
• Client protection and complaints handling: Now that you’re operating, you must consistently enforce the FAIS General Code of Conduct. This code requires treating clients fairly, providing them with necessary risk disclosures, not making misleading statements in advertising, etc. One key element is having a proper complaints resolution process. Clients should know how to lodge a complaint, and the FSP must address it in a set timeframe. If a client is unhappy with the outcome, they can escalate to the Ombud for Financial Services Providers (FAIS Ombud). The FSCA expects you to cooperate with the Ombud and to maintain records of complaints and how they were resolved. A pattern of client complaints that are not resolved can trigger FSCA scrutiny. Therefore, prioritizing customer service and fairness isn’t just good business practice but a regulatory requirement in maintaining your license.
• Marketing and disclosures: As an ongoing matter, ensure all your client-facing materials (website, brochures, social media) remain compliant. For example, you must display your FSP license number on advertisements and websites. Any representation that could be false or create unrealistic expectations is prohibited. Periodically review your content to make sure it aligns with both FSCA rules and any ASA (Advertising Standards Authority) guidelines. Also, keep your disclosure documents (like terms and conditions, risk disclosure statements) updated, especially if you introduce new products or fees.
• Annual renewal vs continuous license: The FSCA license is not something that expires yearly (unlike some gaming licenses) – it remains valid until suspended or withdrawn. However, in effect, renewal is ongoing via the annual levies and compliance. Paying your annual levy is crucial; failure to pay regulatory fees can result in license suspension. The FSCA each year issues a Board Notice detailing FSP levies, and you’ll receive an invoice based on that. Additionally, if you fail to submit the annual compliance report or financial statements, the FSCA can also take action. Think of it as an implicit renewal: each year you demonstrate compliance and pay dues to keep the license active. If you decide to stop business, you can also voluntarily withdraw your license by notifying FSCA.

Renewal of a South Africa forex license

As mentioned, the FSP license doesn’t have a fixed expiry date; it’s an open-ended license as long as you meet ongoing obligations. Therefore, “renewal” is about continuing to satisfy requirements each year. Key aspects to ensure your license remains in force:

• Annual FSCA levies: Pay the levy invoice on time each year. The FSCA typically sends this out after the government Gazette on levies is published. If levies aren’t paid, the regulator can suspend your license until fees are settled.
• Submit annual returns: Provide the Annual Financial Statements (signed off by auditors if required) within 4 months of your financial year end (this is a common deadline). Also submit the Compliance Report by the stipulated date (often within 6 months of year end, depending on FSCA’s schedule). In some cases, if your year-end is December, the compliance report might be due by June. These submissions effectively act as renewal checkpoints – they confirm that your company is solvent, well-run, and compliant.
• Update representative register: Every three months, FSPs must ensure their list of authorized representatives is up to date on the FSCA’s register. If you’ve taken on new representatives, you add them (with FSCA approval processes for those who need to be on record), and if some have left, you mark them as inactive. This dynamic updating is part of staying compliant and is looked at during any regulatory inspections.
• Address any conditions: Sometimes the FSCA grants a license with certain conditions (e.g., “the FSP must not hold client funds” or “the FSP must report on X monthly for the first year”). Make sure you adhere to any special conditions. After some time, you can apply to have conditions removed if applicable (like once you demonstrate a track record, FSCA might relax extra reporting).
• License scope changes: If your business evolves, you might need to vary your license rather than renew per se. For instance, if after a year you want to add Category II (to manage portfolios), you apply for a license variation which is akin to a mini-application focusing on that new aspect. Or you might decide to discontinue some services, in which case you inform FSCA to remove those authorizations. Keeping your license scope aligned with what you actually do is important; offering a product without the corresponding sub-category on your license would be a breach.
• Dealing with issues proactively: If at any point you fall out of compliance (say, your Key Individual quits and you don’t have a replacement immediately, or your auditor issues a going concern warning in financials), it’s wise to proactively communicate with FSCA and present a plan to fix the issue. Regulators appreciate honesty and effort to come back into compliance. This can prevent escalation. The license is not automatically revoked for a single issue – FSCA usually gives chances to correct problems, especially if informed willingly.

Suspension or revocation of a South Africa forex license

The FSCA has the power to suspend or withdraw an FSP license if a company seriously or persistently breaches the laws. Scenarios that could lead to suspension or revocation include:

• Non-compliance with laws or license conditions: If the FSP is found to violate the FAIS Act or its Codes – for example, not segregating client funds, giving advice that causes client harm, failing to submit reports despite repeated reminders – the FSCA can take action. Usually, the process escalates: the FSCA might send a warning or compliance notice first. If ignored, they could then suspend the license (meaning the firm must cease rendering financial services for a period). If matters are not remedied, a full withdrawal (revocation) of the license can occur, effectively shutting down the business’ legal ability.
• Misrepresentation or fraud: If it turns out the license was obtained under false pretenses (e.g., you lied on the application or submitted forged documents), the FSCA will almost certainly revoke the license once discovered. Similarly, if the business or its principals engage in fraudulent activities, the license is at risk. The FSCA’s enforcement reports show cases where licenses were withdrawn due to misappropriation of client funds or ponzi-type schemes – the regulator aims to weed out bad actors decisively.
• Insolvency or financial unsoundness: Should the company become insolvent or go into liquidation, the license will be withdrawn (an insolvent entity cannot be an FSP as it fails the financial soundness requirement). Even before formal insolvency, if your financial statements or auditor report indicate the company can’t meet liabilities, the FSCA might suspend activities until finances are shored up. The idea is to prevent an under-capitalized broker from continuing to take client money and trade with it, which could lead to client losses.
• Unapproved changes/unfit persons: If there’s a change in ownership or key individuals and the new persons are not approved (and especially if they would not meet fit-and-proper criteria), the FSCA might suspend the license until proper approval is sought, or ultimately withdraw it if the situation isn’t rectified. For example, if a licensed broker was sold to someone with a criminal record without FSCA consent, the authority could very likely retract the license.
• Failure to pay levies or fees: Something as basic as not paying the annual levy or other prescribed fees can result in suspension. This is one of the simpler compliance points, and falling delinquent on payments is viewed dimly.

Procedurally, the FSCA usually issues a notice of intention to suspend or withdraw, giving the FSP an opportunity to make representations (defend itself or agree to measures). In urgent cases (e.g., client funds at immediate risk), they can suspend first and then allow you to respond. There is also an appeals mechanism: decisions of the FSCA can be referred to the Financial Services Tribunal for reconsideration. However, that’s a legal process and if the facts of non-compliance are clear, appeals may not succeed.

It’s worth noting that South Africa in recent years has bolstered enforcement to protect consumers – a point of emphasis after various financial scandals. So, an FSP license should be treated as a privilege that comes with the expectation of ongoing integrity. If suspended or revoked, the firm must cease all regulated activities (and usually must inform its clients of the situation). Operating without a license, as noted, is a criminal offense, so once a license is gone, a company cannot legally continue trading business. The reputational damage of a public withdrawal is also significant, so it is best to proactively address issues before they reach a breaking point.

Updates to South Africa forex licensing in 2024–2025

The South African regulatory landscape has been evolving. Here are some key recent updates and changes affecting forex licensing and FSPs:

• Crypto assets brought under regulation (2023–24): A major development was the FSCA’s decision to declare crypto assets as a financial product under the FAIS Act, effective June 2023. This meant that any platform or provider dealing in crypto (Bitcoin, etc.) needs to be licensed as an FSP (Category I, sub-category “Crypto Asset”). The FSCA gave existing crypto companies until November 2023 to apply for licenses. By June 2024, it had approved 138 crypto asset provider licenses – integrating a whole new sector under its supervision. For forex brokers, this is relevant if you offer crypto trading: you now need to ensure your license covers crypto assets. It also demonstrates the regulator’s commitment to expanding oversight to all relevant financial services and leveling the playing field. We can expect continued focus on crypto compliance and perhaps new rules specific to crypto trading under the upcoming COFI Act.
• Enforcement focus on OTC derivatives:** As detailed earlier, the FSCA has been cracking down on those offering CFDs or forex without the proper ODP authorization. In early 2023, they fined a brokerage (Globex360) for operating as an ODP without a license, clarifying that simply having a Category I FSP license isn’t enough if you’re the counterparty to client trades. They issued guidance on when an ODP license is required, essentially drawing a line that if a broker intermediates two identical CFDs (one with client, one with LP), that broker is deemed to be an ODP. All brokers have since moved to comply, but new applicants should be aware: you will need to apply for an ODP license simultaneously if you plan a market-making model. This ODP regime adds some complexity (more documents, coordination with the FSCA’s Capital Markets team), but it’s now a firm part of the landscape. The FSCA continues to monitor unlicensed players – for example, they’ve issued warnings and fines to unregistered trading signal providers and copy traders. The message is clear: any form of financial service in derivatives needs licensing, and the authority is actively enforcing this.
• FAIS to be replaced by COFI Act: The financial sector laws are being consolidated. The Conduct of Financial Institutions (COFI) Bill is set to become law possibly in 2024 or 2025. COFI will eventually replace the FAIS Act (as well as various other acts for banks, insurers, etc.), creating a unified conduct law. For FSPs, this should streamline some regulatory aspects and possibly introduce a new licensing format, but the core principles (treating customers fairly, disclosure, etc.) will remain. Existing FSP licenses are expected to transition into the COFI framework once it’s effective – the FSCA will provide guidance when the time comes. In the meantime, all current FAIS requirements stay in force. Applicants in 2025 should keep an eye on COFI developments, as it could introduce new rules on culture and governance, but likely nothing that invalidates what you built for FAIS.
• Fee increases and regulatory funding: The FSCA has adjusted fees and levies periodically. For instance, effective 1 October 2024, various fees went up by around 6% to keep pace with inflation. This includes fees for license applications, changes, and the annual levies. While not a dramatic change, it’s a reminder that the cost of compliance can incrementally rise. Also, the FSCA’s budget and staffing have been increasing as they take on more responsibilities (like crypto). This means you can expect a more well-resourced regulator – potentially quicker processing times, but also more capacity for supervision and inspections.
• Grey-listing of South Africa (AML): In 2023, South Africa was “grey-listed” by the FATF for deficiencies in anti-money laundering controls country-wide. The government and regulators (including FSCA) have been working to tighten AML laws and enforcement. For FSPs, this means heightened scrutiny on AML compliance. In 2022–2023, laws like the FICA were amended to impose more obligations, and the FSCA has been conducting AML inspections on FSPs. As a licensee, you should be prepared for more intensive AML audits and ensure your AML program is very robust. The good news is South Africa aims to get off the grey list by showing effective enforcement – so by beefing up compliance you not only meet local requirements but also contribute to that effort. Keep an eye on any FSCA communications on AML; they may issue directives or guidance as needed.
• Technological integration: The FSCA has been improving its own tech – they launched more online portals (for licensing, for regulatory returns, etc.). Over time, expect more digital interaction. Already, new license applications and profile updates are handled through online systems, and the FSCA even provides e-learning modules for industry participants. This modernization is a positive update as it tends to make processes more transparent and efficient.

Who issues the South Africa forex license?

The Financial Sector Conduct Authority (FSCA) is the sole body that issues forex trading licenses (FSP licenses) in South Africa. The FSCA is an independent financial regulator under the Ministry of Finance, established in 2018 to replace the old Financial Services Board. It is responsible for regulating non-bank financial institutions, including insurance companies, asset managers, and financial services providers (which encompass forex and CFD brokers).

In practical terms:

• Applications for an FSP license are submitted to the FSCA (specifically, the Regulatory Authority’s Licensing Department for FAIS).
• The FSCA reviews, approves, and then grants the license by issuing an official FSP license certificate and number.
• The FSCA also maintains the register of authorized FSPs, which is publicly searchable on its website. If you have a license, your company’s name and license details will appear there, which is often how clients or banks verify your credentials.

There are no provincial or secondary regulators involved; it’s all centralized through the FSCA. South Africa does not have a concept of “self-regulatory organizations” for forex that issue licenses – the model is strictly regulatory oversight by the FSCA, unlike some countries where an exchange or association might grant memberships or licenses.

Historically, as context, the FSB (Financial Services Board) was the predecessor performing the same function until the Twin Peaks reform (which created the FSCA for conduct and the Prudential Authority for prudential regulation of banks/insurers). So some older documentation may refer to FSB licenses, but those have all converted to FSCA licenses now.

It’s important for licensees to know that the FSCA is your primary point of contact for regulatory matters. If you need to request a change to your license or seek clarification on a rule, you approach the FSCA. They periodically issue Board Notices and Guidance Notes that clarify licensing and conduct matters, which are effectively instructions from the issuing authority.

Why the South Africa forex license is ideal for startups

For fintech entrepreneurs and emerging brokerage firms, a South African forex license can be an excellent choice to launch and grow your business. Here’s why this jurisdiction and license can be startup-friendly:

• Access to emerging markets with high growth potential. If your startup’s strategy is to capture traders in Africa, the Middle East, Asia, or Latin America, having an FSCA license gives you a strong base. South Africa is a respected financial hub in Africa, and being regulated there lets you market your services in many countries where an “FSCA-regulated” badge is a competitive advantage. It’s a way to distinguish your startup from unregulated competitors when attracting customers in those regions. As emerging markets see rapid growth in retail trading, starting under FSCA regulation positions you to ride that wave in a compliant manner.
• Balanced regulatory burden for newcomers. While we noted the FSCA requirements are solid, for a well-prepared startup with some capital, they are achievable and not overkill. The capital requirement (even if ~$500k recommended) is significantly lower than in top-tier jurisdictions like the UK or EU, where $1–2 million (plus three years of financial statements) might be needed. The process of 4–6 months is also much faster than many Western regulators. This means a startup can go from concept to licensed operation within the same year – critical in the fast-moving fintech world. Additionally, the single-license covering all products means a startup can be agile in pivoting its offerings (e.g. start with forex, add crypto or stocks later) without needing entirely new licenses. In short, FSCA provides strong regulation without the extremely high entry barriers seen elsewhere, which is ideal for serious startups that have resources but not a long operating history.
• Cost efficiencies and tax advantages. Startups are often budget-conscious. In South Africa, you benefit from relatively low operating costs: labor (developers, support staff) can be more affordable than in Europe/North America, office rents are reasonable, and professional services, while not cheap, often cost less than equivalents in London or Sydney. The corporate tax rate of 27% is moderate, and there are possibilities to optimize taxes (for instance, if your clients are mostly abroad, certain services might qualify for zero-rated VAT, and you can structure the business to legitimately reduce taxable income via expenses or group arrangements). Moreover, the extensive double tax treaties can help if your startup has foreign investors or a parent entity – dividends or royalties can often be paid at reduced withholding tax rates due to these treaties. Thus, more of your earnings can be reinvested in growth rather than lost to taxes, which is a boon for startups trying to scale.
• Scalability and global recognition. As your startup grows, an FSCA license can scale with you. You can increase your client base into the tens of thousands and still operate under the same license, just adding more representatives or increasing capital as needed. The FSCA license is also a good springboard if you later seek licenses in other jurisdictions; foreign regulators will view the fact you were monitored by FSCA positively. Many brokers that eventually got EU or other licenses started with an offshore or mid-tier license like South Africa to build a track record. Additionally, partnerships with banks, payment processors, or even potential acquisition by a larger broker/investor are all facilitated by being properly licensed – it makes your startup more credible and valuable. In fact, there’s a secondary market where FSCA-licensed companies are acquired by others looking for a quick entry (several firms advertise ready-made Category I or II FSPs for sale), which illustrates that the license itself becomes a valuable asset if your startup ever looks for an exit strategy.
• Innovative environment and support ecosystem. South Africa has a vibrant fintech community and a good ecosystem for financial startups. There are incubators, industry conferences, and a pool of experienced professionals. The regulator itself, FSCA, has shown willingness to engage with fintechs – for example, they have had initiatives to understand new products and even a sandbox approach for certain innovations. As a startup, this environment can be advantageous: you’re not alone, and you can find mentorship and talent relatively easily. Also, being in a time zone that overlaps Europe and having English as the primary business language means integrating with global operations (whether hiring developers in Eastern Europe or marketers in Asia) is seamless.

Official Sources & Primary Legislation (South Africa)

Primary Acts

• Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS) – full text, PDF
• Financial Markets Act 19 of 2012 (FMA) – overview page with PDFs
• Financial Sector Regulation Act 9 of 2017 (FSR Act) – overview page
• Financial Intelligence Centre Act 38 of 2001 (FIC Act) – full text, PDF
• Exchange Control Regulations, 1961 – full text, PDF

FSCA – Financial Sector Conduct Authority (Market Conduct Regulator)

• FSCA official website
• Licensing & Registration portal (FAIS, Capital Markets, etc.)
• FSP Register – Search Authorised & Applied Financial Services Providers
• ODP Register – Search Over-the-Counter Derivative Providers
• Lists of Regulated Entities & Persons
• FAIS Verifications (FSPs, Compliance Officers, Debarred Persons)
• FSCA Fees (licensing and supervisory fee schedules)

SARB – South African Reserve Bank & Prudential Authority (Exchange Control & Prudential Licensing)

• Authorised Dealers (ADs) overview
• Currency and Exchanges Manual for Authorised Dealers – PDF (latest edition)
• Authorised Dealers in Foreign Exchange with Limited Authority (ADLAs) overview
• Currency and Exchanges Manual for ADLAs – PDF
• Prudential Authority – Banking licensing guide (PDF)
• Prudential Authority – FSR Act information page

FIC – Financial Intelligence Centre (AML/CFT)

• FIC Act – full text, PDF

Registries & Customer Protection Touchpoints

• Check an FSP authorisation status (FSCA)
• Browse lists of regulated entities and persons (FSCA)