EN#0363 – South Africa Category I FSP License, dormant, regulated by FSCA, for sale

An opportunity to acquire involving a South African Financial Services Provider holding a Category I license issued by the Financial Sector Conduct Authority (“FSCA”). The license covers financial services relating to shares and derivative instruments and was previously used under an arrangement with a major Cyprus Investment Firm (“CIF”). 

Key Highlights:

• License and Permissions: The entity holds an FSCA Category I Financial Services Provider license with permissions covering shares and derivative instruments. The precise authorized product categories and license conditions should be confirmed through the FSCA register and regulatory due diligence.
• Regulatory Standing: According to the information provided by the seller, the entity’s FSCA Category I license is currently maintained without any known outstanding regulatory concerns. There are no pending enforcement actions, unresolved supervisory matters, license restrictions, compliance deficiencies or other issues with the FSCA that may adversely affect the entity’s regulatory standing.
• Operational Status:  The company has been dormant for more than one year and currently has no active business operations. This provides a prospective purchaser or commercial partner with an established licensed structure that may be adapted to its intended business model, subject to regulatory approval and operational readiness.
• Banking Infrastructure: The entity maintains operational bank accounts denominated in USD, GBP and EUR with a banking institution outside South Africa. These arrangements may support international treasury and payment operations, subject to applicable exchange-control, AML/CFT, banking and regulatory requirements.
• Regulatory Capital:  No fixed minimum regulatory capital requirement applies to the entity’s current license scope. The company must nevertheless maintain sufficient financial resources to meet its operational expenses, with approximately three months of projected expenditure recommended as an internal financial buffer.
• Financial Position: The entity has no debt or other known financial liabilities. Its current monthly operating and maintenance expenses are approximately USD 4,000–5,000.

This South African Category I FSP represents an opportunity for buyers or commercial partners seeking an existing licensed structure with permissions relating to shares and derivatives, established multi-currency banking arrangements and no known debt or regulatory issues. The structure should be reviewed carefully to ensure that the licensed entity retains appropriate governance, operational substance and regulatory responsibility.

For further information on the sale of this South African Category I FSP License, please contact our Mergers & Acquisitions team at  info@salvusfunds.com.  More entities for sale can be found within our  Entity Acquisition or Sale  service.

SALVUS Funds’ teams can be engaged for guiding on new license authorizations for investment, payments or crypto-asset services, ongoing regulatory compliance consultancy for such licensed entities, and support in successfully acquiring ready-made regulated entities. 

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