The Financial Sector Conduct Authority (FSCA) has published the fourth edition of the Regulatory Actions Report for the period between 1 April 2025 and 31 March 2026, which outlines the FSCA’s enforcement activities and highlights its ongoing commitment to protecting financial customers, promoting market integrity, and holding regulated entities accountable for misconduct.
The report indicates the FSCA’s is committed to a risk-based and outcomes-focused regulatory strategy, prioritising matters that pose the greatest threat to consumers and their confidence in South Africa’s financial sector. During the reporting period, the FSCA focused on combating online financial harm, market abuse, misappropriation of client funds, anti-money laundering (AML/CFT) failures, unlicensed insurance activities, and misconduct affecting vulnerable consumers.
The FSCA improved its enforcement actions during the year. It completed 678 investigations, compared with 633 in the previous year, and reduced the number of investigations still in progress. The FSCA also imposed about R2.8 billion in penalties on 76 individuals and entities, a major increase from R119.8 million the previous year. Most of these penalties were imposed for breaches of the Financial Advisory and Intermediary Services (FAIS) Act, market abuse, and non-compliance with the Financial Intelligence Centre (FIC) Act.
The FSCA also took other regulatory action, including issuing 11 directives, withdrawing 14 licences, suspending 31 licenses, and concluding 36 enforceable undertakings. A total of 68 individuals were debarred by the FSCA, meaning they were prevented from providing financial services. In addition, FSPs debarred 1 792 representatives because of dishonesty and integrity-related misconduct.
The FSCA took strong action against serious financial misconduct during the year. In the Banxso case, the company was fined more than R2 billion, key individuals were debarred for long periods, and its license was withdrawn after the use of deepfake advertisements, misleading information, unauthorised financial services, and misuse of client funds. The Medbond case involved a fake investment product that caused investors to lose about R194 million, resulting in large penalties, license withdrawals, and a 30-year debarment. The FSCA also imposed an additional R358.75 million administrative penalty on a former Steinhoff executive for publishing false financial statements.
The FSCA identified online financial crime as a growing risk, particularly impersonation scams, deepfake advertising, unauthorised trading platforms, and online investment fraud. To protect consumers, the FSCA increased its public awareness activities and issued 140 public warnings, compared with 107 the previous year. Many of these warnings concerned unlicensed investment schemes and individuals fraudulently posing as representatives of legitimate financial institutions.
The FSCA also increased its cooperation with local and international regulators and law enforcement agencies to combat financial crime. Internationally, it continued collaborating through the International Organization of Securities Commissions (IOSCO) Multilateral Memorandum of Understanding, sharing information with foreign regulators to address cross-border financial misconduct. Domestically, the FSCA maintained partnerships with the South African Police Service (SAPS), the National Prosecuting Authority (NPA), the Prudential Authority, the Financial Intelligence Centre, and other regulators. During the year, the FSCA referred 46 matters to SAPS for criminal investigation and supported 12 ongoing criminal investigations and prosecutions. The FSCA also held a Financial Crime Symposium where stakeholders discussed risks such as cybercrime, crypto assets, organised financial crime, online betting, scams, and the need for better cooperation.
Important court decisions also strengthened the FSCA’s enforcement powers. These decisions supported the FSCA’s ability to protect information during investigations and confirmed that starting an investigation cannot be challenged as a reviewable decision. The Viceroy judgment also strengthened the FSCA’s ability, in certain circumstances, to take action against foreign individuals whose conduct affects South African financial markets.
The FSCA going forward will continue to focus on online scams, unauthorised insurance activities, unlicensed referral businesses, unauthorised trading signals, examination fraud, misuse of client information, market manipulation, AML failures, and the non-payment of retirement fund contributions. Overall, the report shows that the FSCA is taking stronger and more technology-focused action to protect consumers, prevent misconduct and maintain confidence in South Africa’s financial sector.