EN#0377 – South African Cat I FSP, operational, regulated by FSCA, for sale

An opportunity to acquire an operational South African Financial Services Provider holding Category I license issued by the Financial Sector Conduct Authority (FSCA). They are authorized to provide financial advice and intermediary services in relation to shares, derivative instruments, and short-term deposits. The entity is structured to support share trading, derivatives and CFD-related activities and may receive and hold client funds, subject to the applicable regulatory and operational requirements.

The entity has no existing clients and is offered as a plug-and-play regulated business with active personnel, professional indemnity insurance, approved auditors, banking arrangements and key regulatory appointments already in place.

Key Highlights:

• License and Regulatory Status: The entity holds a Cat I FSP license and is regulated by the FSCA.
• Products and Permissions Approved: The entity is approved to provide non-automated advice and other intermediary services in relation to:
  • Shares
  • Derivative Instruments 
  • Short-term Deposits

The entity does not hold permissions for automated advice or scripted intermediary services.

• Business Model: The entity is suitable for providing regulated advice and intermediary services in connection with share trading, derivatives, and CFDs. Its operational framework may also support the receipt and holding of client funds, subject to the establishment of the required client-money arrangements.
• Operational Status: The entity is operational and has no existing clients, providing the purchaser with a regulated platform without an inherited client book or legacy transaction history. It maintains one active Key Individual, two compliance officers, professional indemnity insurance, approved auditors, an active director and appointed MLRO, FIC reporting officer, PAIA reporting officer, and external accounting officer.
• Operational Continuity: The existing personnel and active director are prepared to remain with the entity under minimum contractual commitments of approximately 12 to 24 months. This provides continuity following the acquisition and reduces the time and cost associated with identifying and appointing suitably qualified personnel.
• Banking Infrastructure: The entity maintains an active operational bank account with First National Bank in South Africa. A segregated trust account for client funds is not currently open but may be established following the acquisition, with the regulator notified accordingly.
• Minimum Regulatory Capital: The entity must maintain liquid assets equal to four fifty-seconds (4/52) of its annual operating expenditure, together with compliance with the general financial-soundness requirement that its assets exceed its liabilities.
• Capital Currently Held: The entity currently maintains its own operational capital to cover monthly expenses and regulatory requirements. This cash is not included in the asking price and will be added to the purchase price at cost on a one-to-one basis at completion.
• Operating Expenses: Current monthly operating expenses are approx. USD 3.5k under a light operating structure.
• Financial Position: The entity has no known debt or other financial liabilities.

This South African Category I FSP license represents an attractive opportunity for a purchaser seeking an operational regulated platform with approved product permissions, experienced personnel, governance arrangements and banking infrastructure already in place. Its client-free status allows the purchaser to implement its own commercial strategy without inheriting an existing client base, while the continued involvement of the established team may support an efficient transition following completion.

For further information on the sale of this South African Cat 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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