Task 2 — Licensing of Financial Services Providers

Sections 8 and 9 of the FAIS Act, read with the Determination of Fit and Proper Requirements (Board Notice 194 of 2017), set out who may be authorised as a Financial Services Provider (FSP), the categories of licence available, and the continuous conditions under which the licence remains valid. The FSCA may grant, suspend, vary or withdraw a licence on application or on its own initiative.

• 01FSP categories: Category I (advice/intermediary), II (discretionary), IIA (hedge-fund DIM), III (administrative), IV (assistance business).
• 02An applicant must demonstrate personal character, competence, operational ability, financial soundness and professional indemnity at all times.
• 03Annual compliance reports, audited financial statements, and prescribed levy payments must be filed within published deadlines.
• 04Material changes (ownership, KI, business model, address) must be notified to the FSCA promptly — section 14 read with the Conditions of Licence.

• 01Which licence category covers each scenario (e.g. discretionary fund manager → Category II).
• 02Grounds on which the FSCA may suspend or withdraw a licence under section 9.
• 03The difference between voluntary surrender, lapsing, and statutory withdrawal of a licence.
• 04Documentary evidence the applicant must lodge with the FSCA on initial application.