Tag: Financial Sector Conduct Authority (FSCA)

Last month, two reputable South African virtual asset service providers in South Africa made history by issuing first-of-its-kind proof of reserve reports, a move that will assist to combat fraud, protect crypto holders and industry stakeholders, and help cultivate credibility for the local cryptocurrency market.

It is sometimes said that the 'law is an ass' when one thinks the law is too rigid, unnecessary or ridiculous. The complainant sought payment of a surplus benefit following the death of her husband who was a member of the Auto Workers Provident Fund.

Keep up to date on the most important Financial Services Regulation developments in South Africa in June 2021.

For a beginner starting out with trading, the most important thing is to be informed. Ideally starting with a trading course of some kind is the best thing to do. Knowing how to open and close trades, finding a reputable trading platform and reading up on best practices are great places to start.

The infamous case of South Africa’s Mirror Trading International (MTI) has been crowned as the world’s largest cryptocurrency Ponzi scam. A total of around $589 million was lost, affecting hundreds and thousands of investors, according Chainanalysis’ 2020 Crypto Crime Report.

On 20 November 2020, the Financial Sector Conduct Authority (FSCA) published a draft Declaration (Draft Declaration) and a statement in support thereof which sets out its proposal to bring crypto assets within the ambit of the definition of 'financial product' in Section 1 of the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act).

Ongoing volatility, further progress on regulations and continued interest from institutional investors can be expected in 2021. Looking back at our predictions from last year - the Bitcoin halving happened without a hitch and the industry matured as institutional investors entered the market.

Individual consumers and businesses will no longer be able to cash cheques in South Africa. This follows a joint announcement by the SARB, FSCA, PASA and BASA which confirmed that the issuing and acceptance or collection of cheques will cease from 31 December 2020. 

Financial services providers (FSPs) registered under the Financial Advisory and Intermediary Services Act 2002 fall within the ambit of ‘accountable institutions’ under the Financial Intelligence Centre Act 2001. As accountable institutions, these FSPs are obliged to comply with the FIC Act and are subject to oversight by the FSCA.

Santam faces a litany of urgent court applications for flaunting the regulatory boards’ warning and refusing to pay out valid COVID-19 business interruption claims. A flood gate of final demands have been issued against insurance giant Santam in respect to business interruption claims from insured business owners and respondents across South Africa that Santam refuse to pay out despite the insurance regulatory authority’s direction to do so.