EN#0406 – South Africa Category I & II FSP, non-operational, regulated by FSCA, for sale

An opportunity to acquire a newly licensed South African Financial Services Provider (FSP), authorized by the Financial Sector Conduct Authority (FSCA) under Category I and Category II. The entity offers an established regulatory structure for financial advisory, intermediary and discretionary portfolio management services, supported by an operational bank account, compliance framework and experienced management available to support the transition. 

Key Highlights: 

• License and Regulatory Status: The entity holds a newly issued Category I and Category II FSP license regulated by the FSCA, with no reported regulatory issues. 

• Licensed Activities: Category I authorizes non-automated financial advice and intermediary services, while Category II permits discretionary investment management. Both categories cover five investment product classes: Shares, Money Market Instruments, Bonds, Derivative Instruments and Participatory Interests in Collective Investment Schemes. 

• Operational Status: The entity is currently non-operational, with no existing clients. 

• Regulatory Capital: The entity currently holds ZAR 12k in regulatory capital. Its Category II business plan provides a liquidity reserve equivalent to 8/52 of annual operating expenditure, with the applicable minimum capital and financial soundness requirements subject to confirmation. 

• Banking Infrastructure: The entity maintains an operational corporate bank account with First National Bank (FNB). 

• Management Continuity: Shareholders have over 40 years of experience in financial markets, including stockbroking and banking, and are willing to remain as directors. The existing Key Individual (KI) is also willing to continue in the role, supporting operational continuity and the purchaser’s transition. 

• Compliance Framework: Compliance, AML/KYC and risk management policies are in place, having been established as part of the regulatory license application and approval process. 

• Financial Position: The entity has no debt or other financial liabilities. 

• Operating Expenses: Current compliance costs amount to approx. USD 485 per month. Anticipated monthly expenses include a Key Individual fee of USD 3k and director fees of USD 1.5k, bringing the combined estimated monthly cost to USD 4.9k once applicable. 

This South African Category I and II FSP represents an acquisition opportunity for firms seeking an established regulatory structure for investment advisory, intermediary and discretionary portfolio management services. Its broad investment product permissions, existing banking infrastructure, clean financial position and experienced management team offer a practical foundation for establishing operations in the South African financial services market. 

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

The above is not investment advice nor an invitation to the public to invest. Information is provided strictly for strategic or corporate acquisition considerations among qualified parties.

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