The FSP Licence
FSP stands for Financial Services Provider. In South Africa, anyone who provides financial advice or intermediary services — including selling or administering insurance policies — must hold an FSP licence issued by the Financial Sector Conduct Authority (FSCA).
The licence number is a simple way to verify that the person or company you are dealing with is authorised to operate. Socinga Africa Holdings, for example, holds FSP 46620.
Why It Matters to You
An FSP licence means the provider has met the FSCA's requirements for competence, operational ability, and financial soundness. It also means they are subject to ongoing supervision and must comply with the Financial Advisory and Intermediary Services Act (FAIS).
If something goes wrong — a mis-sold policy, a delayed claim, or a missing premium — your recourse depends on whether the provider is licensed. Licensed providers are accountable to the FSCA and can be reported through the FAIS Ombud. Unlicensed operators sit outside this protective framework.
How to Verify an FSP Licence
- Visit the FSCA register at fsca.co.za
- Search by name or FSP number
- Confirm the licence is active and covers the relevant category of business
The register shows the categories of advice the provider is authorised to give. A provider licensed for short-term insurance is not necessarily authorised for long-term products, and vice versa.
Red Flags
- The provider cannot tell you their FSP number
- The FSP number does not appear on the FSCA register
- The licence has lapsed or been suspended
- The provider claims to be "exempt" from licensing requirements
If you encounter any of these, proceed with extreme caution and consider reporting the matter to the FSCA.
Contributed by Socinga Africa Holdings (FSP 46620). This is educational content only and not financial advice.