The Financial Sector Conduct Authority (FSCA) has released its third annual Regulatory Actions Report, covering the period from 1 April 2024 to 31 March 2025. The report highlights the FSCA’s strengthened efforts to protect financial customers, uphold market integrity, and address misconduct in South Africa’s financial services industry.
The FSCA continues to adopt a proactive, risk-based enforcement strategy that targets both regulated entities and unregistered operators. Key priorities include ensuring compliance with financial sector laws, tackling emerging online threats, and holding individuals accountable for unethical or unlawful conduct.
Key enforcement areas include unregistered insurance business, FAIS regulatory examination fraud, and non-compliance with AML risk frameworks.
During the year under review, the FSCA finalised 633 investigations, issued 107 public warnings, and imposed 51 administrative penalties totalling R119.8 million. It debarred 131 individuals, largely for dishonest conduct such as submitting false policies, and withdrew 382 licences, mainly due to the non-submission of statutory returns. A further 24 licences were suspended, often for remediable issues like non-compliance with regulatory obligations.
A notable trend was the significant rise in investigations related to unregistered financial and insurance services, which accounted for more than 70% of new cases. Unregistered insurance cases alone increased by over 134%, underlining the FSCA’s concern about the scale of unlawful activity targeting vulnerable consumers.
The FSCA also escalated its efforts against online financial harm. This includes fraudulent investment schemes, fake trading platforms, impersonations of licensed providers, and the rise of social media-based “finfluencers” offering unauthorised financial advice. One investigation revealed a scheme in which an individual offered forex account management and signal services to over 1,400 people via Telegram. The individual misused more than R800,000 in client funds and was debarred for 10 years, with an administrative penalty of over R1 million imposed.
The FSCA has also focused on investigating fraud RE Examination Certificates advising FSPs to be diligent when checking and verifying certificates provided by representatives. To assist with this the FSCA Communication 38 of 2024 (FAIS) was issued to emphasize the seriousness of these issues and the implications for the integrity of the financial sector.
High-profile investigations also featured prominently in this reporting cycle. In the ongoing Tongaat Hulett case, the FSCA successfully defended its investigative procedures all the way to the Constitutional Court, reinforcing its authority under the Financial Markets Act. The N-e-FG matter, involving the unlawful investment of over R100 million in client funds, resulted in long-term debarments and substantial penalties for several individuals.
To support its enforcement activities, the FSCA worked closely with domestic agencies including the South African Police Service (SAPS), the Hawks, the National Prosecuting Authority (NPA), and the Financial Intelligence Centre (FIC). Forty cases were referred to SAPS, with several under active criminal investigation. The FSCA also co-hosted the 4th South African Financial Crime Symposium, which focused on key issues such as artificial intelligence in financial crime detection and enhanced whistle-blower protections.
Internationally, the FSCA continued to participate in the International Organization of Securities Commissions (IOSCO) and maintained 86 bilateral cooperation agreements with foreign regulators. These partnerships allow the FSCA to conduct cross-border investigations, share intelligence, and harmonise enforcement standards.
In addition to penalties and debarments, the FSCA issued 13 regulatory directives and entered into 14 enforceable undertakings. These tools were used to compel remedial action and ensure compliance in sectors such as funeral parlours, where unregistered insurance practices remain widespread. One such case involved Wenru (Pty) Ltd, where an advisor was found to have processed unauthorised transactions from a client’s account. The FSCA imposed penalties, debarred the advisor for 15 years, and issued a directive to strengthen internal controls.
Looking ahead, the FSCA is preparing for the rollout of the Conduct of Financial Institutions (COFI) Bill, which will modernise the legal framework for market conduct regulation. Alongside this, the launch of an Integrated Regulatory System (IRS) will give enforcement teams faster access to critical information, enabling quicker, data-driven action.
Overall, the 2024 – 2025 report reflects the FSCA’s commitment to visible, fair, and consistent enforcement. By addressing both traditional forms of misconduct and modern, tech-driven threats, the FSCA is working to build a safer and more trustworthy financial system for all South Africans.