EN#0389 – South Africa Cat I FSP, dormant, regulated by FSCA, for sale

An opportunity to acquire a South African Financial Services Provider (FSP) authorized by the Financial Sector Conduct Authority (FSCA) under a Category I license with permissions covering derivatives. The entity was approved for an execution-only online brokerage model, intended to intermediate CFDs and derivative instruments for retail and institutional clients, routing orders directly to third-party liquidity providers rather than acting as principal or counterparty. 

Key Highlights:

• License and Permissions: The entity holds an FSCA Category I FSP license with permissions for advice non-automated and intermediary covering derivatives and other activities listed below:

– Money market instruments 

– Derivative instruments

– Long-term Deposits

– Short-term Deposits

• Regulatory Status: The license has no known outstanding issues with the FSCA and remains in good regulatory standing. 
• Operational Status: The entity is currently dormant and non-operational. It has never commenced trading, had no clients, and had no active business operations. 
• Regulatory Capital: The entity currently holds approx. ZAR 5k in regulatory capital. 
• Financial Position: The entity has no debt or other financial liabilities. Current monthly expenses are approx. ZAR 5k. 
• Banking: A South African corporate bank account is already maintained with Bank Zero, in line with the applicable regulatory requirements. No client-funds bank account is currently maintained; this may be established by the purchaser if required for the proposed business model. 
• Compliance Framework: The entity has AML/KYC, risk-management and other compliance policies in place, which were prepared and submitted to the FSCA as part of the license approval process. 

This South African FSP presents an opportunity for an international FX or derivatives broker seeking an established regulatory platform for accessing the South African market. The entity combines an existing FSCA Category I license, an established South African corporate structure, an existing corporate bank account and an existing compliance framework, while having no client book, trading history, staff, creditors or legacy operational activity. The purchaser may also explore changing the approved business model to align the entity with its intended activities, subject to the applicable regulatory process. 

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

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

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