Latest news with #FinancialSectorConductAuthority
Zawya
9 hours ago
- Business
- Zawya
South Africa: FSCA introduces groundbreaking changes for pension funds
Since 2002, financial regulations have evolved significantly to better protect customers and enhance how financial services operate. However, the old pension-fund rules have not kept pace with these important changes, leaving gaps in member protection and governance. Recognising this, the Financial Sector Conduct Authority (FSCA) has updated the regulatory framework to reflect modern standards, ensuring stronger oversight, fairer treatment, and improved transparency for pension-fund administrators and their members. To this end, the FSCA has introduced the Conduct Standard 2 of 2025 (the 2025 Standard), setting out reformed conditions for pension fund benefit administrators under section 13B(1) of the Pension Funds Act, 1956. The 2025 Standard is supported by the FSCA's Statement of Need and Impact and marks a significant regulatory milestone, formally replacing the outdated Board Notice 24 of 2002 (BN24 of 2002). The FSCA undertook comprehensive stakeholder engagements to refine the regulatory requirements. During the public-consultation period, which ran from 29 July to 13 September 2021, the FSCA received more than 350 comments from 12 commentators. Key issues raised included, inter alia, requests for terminology clarification, concerns around duplication for dual-licensed entities, and questions regarding capital-adequacy thresholds. These inputs were carefully considered and are reflected in the final 2025 Standard. 2025 Standard essentials The 2025 Standard introduces wide-ranging business principles that were absent from the 2002 framework: - Benefit administrators are now required to demonstrate strong governance aligned with TCF outcomes, supported by clearly documented policies and defined oversight responsibilities. - The 2025 Standard sets out detailed fit and proper requirements, including disqualifying criteria and competency thresholds. It also prescribes robust outsourcing conditions, and mandates more comprehensive administration and service-level agreements. - Formal complaints-handling frameworks must be in place, conflict‑of‑interest policies must be enforced, and clear communication protocols with funds and members must be maintained. - Further obligations include data-governance measures, minimum record-retention periods, audit and accounting standards, and the operational capacity to manage member data accurately and securely. Ultimately, the 2025 Standard is designed to bridge these requirements and is intended to close historical regulatory gaps that have led to administrative failings and member prejudice. Transitional timeline While much still needs to evolve, the FSCA has acknowledged the cost implications and, accordingly, removed some of the more onerous requirements. These include a relaxation of auditing obligations and the removal of both the assurance requirement and the R3m capital-adequacy threshold. Upon publication, the 2025 Standard will replace BN24 of 2002 with immediate effect. However, implementation will follow a staggered approach, with certain provisions becoming effective immediately and others phased in over a six- to-12-month transition period. The shift from BN24 of 2002 to the 2025 Standard reflects a fundamental transition from a compliance-focused to a conduct-focused regulatory framework, one that prioritises customer outcomes and governance excellence, while reinforcing operational integrity across South Africa's pension-fund administration sector. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
IOL News
31-07-2025
- Business
- IOL News
Navigating online investment platforms
Explore the growing risks associated with online investment platforms and discover essential measures that both financial service providers and retail customers can take to safeguard their investments. With the growing popularity of online investment platforms, spurred by advancements in digital financial services and the rise of crypto assets, the risk of exploitation of consumers and financial services providers (FSPs) has increased. A recent case in point is Banxso, a Cape Town-based online trading group that, until recently, operated an online investment platform allowing consumers to purchase and sell financial products. On 4 July 2025, the Financial Sector Conduct Authority (FSCA) withdrew Banxso's FSP license, following allegations of non-compliance with certain financial sector laws. The FSCA's investigation was prompted by claims that customers were misled into investing via deepfake videos and social media advertisements featuring billionaire celebrities such as Elon Musk and Rupert Murdoch, purportedly endorsing Banxso. These customers were directed to register via Immediate Matrix on Banxo's platform, a move Banxso claims occurred without its knowledge as a result of a 'malicious attack'. Customers were then contacted by alleged Banxso agents promising substantial returns. While some initially earned profits, many subsequently suffered significant losses.
TimesLIVE
17-07-2025
- Business
- TimesLIVE
PrimeXBT's ‘Trade as VIP' promo offers South Africans almost 70% off trading fees
PrimeXBT, a leading multi-asset broker regulated by the Financial Sector Conduct Authority (FSCA), has launched its latest promotion, ' Trade as VIP', granting all newly registered users in SA instant access to VIP 2 status for 30 days. As part of the platform's tiered system, VIP levels reward traders with reduced fees, tighter spreads, and exclusive platform benefits. For a limited time, new users can experience these professional-grade conditions from the moment they join, without needing to meet any trading volume thresholds. Launched in July and running until August 31 2025, the promotion is designed to remove entry barriers for new traders by automatically upgrading every new account to VIP 2. On the Crypto Futures platform, this unlocks an almost 70% reduction in taker fees, dropping from the standard 0.045% to just 0.015%. In the coming weeks, VIP 2 users will also benefit from up to 30% discounts on spreads across forex and CFDs (contracts for difference) on stocks, commodities, indices, and crypto on PXTrader. In addition to improved trading conditions, VIP 2 status also provides priority customer support, instant withdrawals, and higher withdrawal limits, enhancing the overall trading experience across both platforms. From day one, we're empowering users to start stronger, trade smarter, and build early momentum, combining cost-efficiency with a professional-grade experience designed to help them succeed Sihle Tuta, head of PrimeXBT SA on the broker's new 'Trade as VIP' promotion Sihle Tuta, head of PrimeXBT SA, says the promotion is particularly relevant for local traders navigating cost constraints and seeking fair access to high-performance platforms. 'The 'Trade as VIP' promotion delivers real value by giving SA traders access to some of the best trading conditions in the industry. From day one, we're empowering users to start stronger, trade smarter, and build early momentum, combining cost-efficiency with a professional-grade experience designed to help them succeed,' he says. PrimeXBT ranks among the lowest-cost options on the market, outperforming major platforms in fee efficiency. For example, a $1,000,000 bitcoin trade under VIP 2 would generate $300 in savings compared to standard fees. These savings scale significantly with volume, helping both casual and active traders reduce trading costs without compromising execution quality. With meaningful savings and access to top-tier tools and conditions, PrimeXBT is lowering the cost of entry while raising the standard of what new traders can expect. The 'Trade as VIP' promotion reinforces the broker's ongoing commitment to making high-performance trading more accessible, empowering, and competitive for all, especially in emerging markets like SA. This article was sponsored by PrimeXBT. The content provided here is for informational purposes only and is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results. The financial products offered by PrimeXBT are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money. PrimeXBT does not accept clients from the restricted jurisdictions as indicated on its website.
eNCA
16-07-2025
- Business
- eNCA
Financial watchdog battles surge in crypto scams
JOHANNESBURG - South Africa's financial regulator, the Financial Sector Conduct Authority (FSCA), is intensifying its crackdown on a growing wave of online scams. Over the next 18 months, the FSCA will invest R200 million to strengthen its monitoring and enforcement capabilities including tighter supervision of the cryptocurrency sector. Gerhard van Deventer, the FSCA's head of enforcement, warned the public to remain vigilant, saying there is no such thing as an investment that can legitimately double your money overnight.
IOL News
10-07-2025
- Business
- IOL News
South Africa's crypto market faces regulatory reckoning amid tax demands
The Financial Sector Conduct Authority introduced licensing requirements for crypto asset service providers under the Financial Advisory and Intermediary Services Act, aiming to strengthen consumer protection by classifying crypto assets as financial products. Image: Independent Newspapers/File AS South Africa's cryptocurrency sector hurtles through a turbulent regulatory and tax landscape, evolving rules and heightened scrutiny are forcing investors and service providers to scramble for clarity. As regulatory authorities tighten their grip, questions loom large: How do capital gains taxes apply to crypto disposals? What exactly are the obligations for those simply holding digital assets? While cryptocurrencies may not be legal tender, the SA Revenue Service (Sars) has made one thing clear — it is treating them as taxable intangible assets, triggering capital gains tax upon sale or disposal. The Financial Sector Conduct Authority (FSCA) introduced licensing requirements for crypto asset service providers under the Financial Advisory and Intermediary Services (Fais) Act, aiming to strengthen consumer protection by classifying crypto assets as financial products. Meanwhile, the Gauteng High Court's recent ruling on cryptocurrencies and exchange control regulations sparked significant debate, with the SA Reserve Bank (Sarb) appealing the decision and maintaining its stance that crypto is not legal tender. As the Sarb continues to shape its regulatory approach, crypto investors and service providers face ongoing challenges in adapting to this evolving landscape. Adding another regulatory layer is the Financial Intelligence Centre (FIC), which enforces anti-money laundering and counter-terrorism financing compliance, mandating registration and reporting duties for crypto providers. This dynamic regulatory environment seeks to balance innovation with investor safety and financial stability. To get more insight on this, the Sunday Independent spoke to Sebaga Matabane, the chief executive of a leading Crypto Firm as well as a derivatives and fintech expert. Matabane is also a recognised key opinion leader in Africa's fintech and digital assets space and an FSCA-approved key individual. She brings together deep regulatory insight, strategic foresight, and operational leadership. Sebaga Matabane is a derivatives and fintech expert and a recognised key opinion leader in Africa's fintech and digital assets space. Image: Supplied Sunday Independent (SI): How does the capital gains tax framework apply to cryptocurrency disposals for individual investors in South Africa? Sebaga Matabane (SM): When an individual in South Africa sells or otherwise disposes of cryptocurrency — whether by trading, converting to fiat, or using it for purchases — it triggers a capital gains tax (CGT) event. The first R40 000 of gains annually is excluded, after which 40% of the net capital gain is included in the individual's taxable income. For those in the top tax bracket, this translates to a maximum effective CGT rate of 18%. Timing and accurate record-keeping are key, especially as Sars sharpens its focus on digital asset transactions. SI: What are the tax implications for South African crypto investors who only hold their assets without disposing of them? SM: If you're merely holding crypto without selling, converting, or using it, there's no immediate tax liability — but that doesn't mean it flies under the radar. Sars requires all crypto holdings to be declared in your tax return, even if no taxable event has occurred. Think of it as financial transparency now, to avoid compliance issues later. SI: What licensing requirements does the FSCA impose on crypto asset service providers under the Financial Advisory and Intermediary Services (FAIS) Act? SM: The FSCA now defines crypto assets as financial products, which means any business offering crypto-related services — such as exchanges, trading platforms, or wallet providers — must be licensed as a Financial Services Provider (FSP) under the FAIS Act. This includes appointing approved key individuals, meeting fit and proper requirements, having compliant governance structures, and aligning with ongoing conduct obligations. The intention is to create market integrity, promote professionalism, and ensure consumer protection. SI: How does the FSCA's classification of crypto assets as financial products impact consumer protection in the crypto market? SM: This classification is a game changer. It brings crypto under the same protective framework as other financial instruments, enabling the FSCA to monitor and act against misconduct, misrepresentation, and unfair business practices. Consumers can now benefit from advice from licensed providers, recourse mechanisms, and better disclosure standards. It sets the stage for a more trustworthy and accountable market. SI: How is the SARB approaching the regulation of cryptocurrencies, given that they are not recognised as legal tender? SM: While the SARB maintains that crypto assets do not qualify as legal tender, it acknowledges their growing influence. Its approach is cautious but strategic: it collaborates with other regulators through the Intergovernmental Fintech Working Group (IFWG), explores use cases via sandbox environments, and keeps a close eye on systemic risk, monetary sovereignty, and exchange control circumvention. The Reserve Bank's messaging is clear: crypto is not a threat to ignore, but neither is it a form of money just yet. SI: What is the significance of the Gauteng High Court ruling regarding cryptocurrencies and exchange control regulations, and how might SARB's appeal affect this? SM: The Gauteng High Court's decision that cryptocurrencies are not subject to exchange control regulations has major implications — it effectively opens the door for freer movement of crypto across borders, which could impact capital flows, financial surveillance, and offshore structuring. However, the Sarb is appealing the ruling, signalling its intent to retain oversight. If the appeal succeeds, crypto flows may be subjected to stricter monitoring and reporting, reshaping how exchanges and OTC desks operate. It's a legal pivot point to watch. SI: What challenges do crypto investors and service providers face in navigating the evolving regulatory and tax landscape in South Africa? SM: The biggest challenge is regulatory ambiguity coupled with rapid change. Investors are grappling with complex tax reporting, unclear treatment of cross-border transactions, and a lack of practical guidance. Meanwhile, service providers must juggle licensing deadlines, AML/CFT compliance, FIC registration, and a mounting expectation of institutional-grade conduct — all while trying to remain agile and innovative. Ultimately, navigating this space requires a blend of legal foresight, tax expertise, and operational discipline. It is clear that the country's cryptocurrency sector stands at a critical crossroads, caught between the forces of innovation and regulation. Yet within this turbulence lies opportunity. The regulatory reckoning now underway could very well lay the foundation for a more secure, transparent, and mature crypto market. But success will depend on the ability of players to adapt swiftly, comply fully, and anticipate the next wave of regulatory evolution. In this high-stakes game of compliance and innovation, one thing is certain: the rules are being written — and those who understand them, shape them, or break them will define the future of crypto in South Africa, and Africa as a whole. Get the real story on the go: Follow the Sunday Independent on WhatsApp.
