What is The Financial Sector Conduct Authority (FSCA)?
The Financial Sector Conduct Authority (FSCA) is an independent statutory body in South Africa which regulates the financial services sector. It was formed to protect consumers who use financial services, and it has been responsible for licensing, supervising and monitoring the conduct of all major players in the industry including banks, insurance companies, retirement funds and investment firms. The FSCA’s purpose is to ensure that these institutions adhere to laws governing their operations such as Anti-Money Laundering legislation and Consumer Protection Act regulations.
The FSCA works closely with other regulatory bodies like law enforcement agencies and international organisations such as the International Organization of Securities Commissions (IOSCO) in order to protect investors from fraud or malpractice. They also promote transparency by requiring firms to publish information about their activities on a regular basis.
In addition, the FSCA has created several guidelines for cryptocurrency exchanges operating within South Africa in order to reduce instances of money laundering or terrorist financing through virtual currency transactions. These include requirements for customer due diligence procedures as well as registration processes with local tax authorities before any crypto exchange can operate legally inside South African borders.
