EN#0390 – South Africa Cat I and Cat II FSP, dormant, regulated by FSCA, for sale
An opportunity to acquire a dormant South African Financial Services Provider (FSP) authorized by the Financial Sector Conduct Authority (FSCA) and structured to provide holistic financial advice, intermediary services and discretionary wealth and asset management services.
The entity has never commenced operations and has no clients, trading history, staff, creditors or legacy client files. Together with an active South African corporate bank account and an established compliance framework, the entity provides a clean regulatory platform for international wealth and asset managers seeking access to the South African market.
Key Highlights:
- License and Permissions: The entity holds a Category I and Category II FSP license.
Category I has permissions for advice non-automated and intermediary other covering the activities listed below:
– Long-Term Insurance subcategory A
– Short-Term Insurance Personal Lines
– Long-Term Insurance subcategory B1
– Long-Term Insurance subcategory B2
– Long-Term Insurance subcategory B2-A
– Long-Term Insurance subcategory B1-A
– Structured Deposits
– Participatory interest in a hedge fund
– Crypto Assets
– Long-Term Insurance subcategory C
– Retail Pension Benefits
– Pension Funds Benefits
– Shares
– Money markets instruments
– Debentures and securitised debt
– Warrants, certificates and other instruments
– Bonds
– Derivative instruments
– Participatory interest in a collective investment scheme
– Long-term Deposits
– Short-term Deposits
Category II has permissions for intermediary other covering the activities listed below:
– Crypto Assets
– Retail Pension Benefits
– Shares
– Money markets instruments
– Debentures and securitised debt
– Warrants, certificates and other instruments
– Bonds
– Derivative instruments
– Participatory interest in one or more collective investment schemes
- Regulatory Status: There are no known regulatory issues, enforcement matters or outstanding compliance concerns affecting the license.
- Regulatory Capital: Total Assets must exceed Total Liabilities, and Current Assets must exceed Current Liabilities at all times. The entity currently has a liquidity requirement of ZAR 12,681 and presently holds ZAR 15k. The liquidity requirement is calculated with reference to 8/52 weeks of annual expenses based on the audited annual financial statements and is expected to increase once the entity becomes operational.
- Operational Status: The entity is dormant and has never commenced commercial operations. It has no existing clients, client book, trading history, legacy client files or employees, allowing an incoming purchaser to establish its own operational structure and commercial strategy.
- Banking Infrastructure: The entity maintains an active corporate bank account with Capitec Bank, providing an existing South African banking relationship for the purchaser. No separate client-funds bank account is currently maintained.
- Compliance Framework: Compliance, AML/KYC, and risk-management policies are already in place and were submitted as part of the FSCA licensing process. These policies may be reviewed and adapted to the purchaser’s intended products, clients, distribution channels, and operating model.
- Financial Position: The entity has no debt or other financial liabilities. Current monthly expenses are approx. ZAR 5k.
This South African FSCA-regulated FSP represents an acquisition opportunity for international asset and wealth managers seeking an established regulated structure through which to access the South African market. Its dormant status, absence of clients and legacy operational history, existing Capitec Bank corporate account and established compliance framework provide a practical foundation for an incoming purchaser seeking to implement its own wealth or asset management business model.
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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