FAIS Category I & II (FSCA) in South Africa for Sale
South Africa’s Financial Services Provider (FSP) licence, issued by the Financial Sector Conduct Authority (FSCA)under the FAIS Act, covers two distinct tiers: Category I — financial advice and intermediary services — and Category II — discretionary portfolio management. Both now include crypto assets, declared financial products in 2022 and subject to Travel Rule compliance from April 2025.
The regulatory backdrop has shifted in favour of licence holders: South Africa’s removal from the FATF grey-list in October 2025 has materially improved banking access for FSCA-regulated entities. Combined with a common-law framework and one of Africa’s most developed capital markets, an FSCA-issued FSP licence remains the required structure for fintech firms, advisers, and asset managers operating in or into the South African market.
Requirements are substantive. Key Individuals must meet fit-and-proper standards — RE exams, documented experience, and ongoing CPD. A complete application takes 2–6 months. Acquiring a ready-made FAIS-licensed entity can compress early setup, though Key Individual approvals and compliance realignment still apply.
This page covers FAIS Category I and Category II FSP entities currently available for transfer, alongside a full regulatory breakdown, cost structure, and step-by-step acquisition guide.
Our team handles both paths — ready-made acquisition and new FSCA application — covering fit-and-proper planning, compliance filings, and Key Individual onboarding.
Our Available FAIS Category I & II Licences in South Africa for Sale
South African CAT1 & CAT2 License for Sale
- Licensed in 2024
- Authorization: Brokerage & Portfolio Management, including crypto assets
- Fully set up and ready for operations
- Fast and seamless share transfer process
- Includes active South African bank account
- Key Individuals and other personnel open to staying on board
- Clean compliance and operational history
Financial Service Provider License for Sale
- License issued in 2023
- License Category: 1.13 with shares and crypto permissions
- No book of business or clients
- No set capital requirements; based on operational expenses
- Local staff in place
- Share capital set at 1000 shares (each share holds a value of one rand)
- Local bank account available; guidance possible for additional local bank accounts
- Ability to take ownership in 2 weeks; name change in additional 2 weeks
FSP Category I License for Sale
- Licensed FSP (Category I) approved for Crypto Assets (non-automated advice and intermediary services).
- Local Nedbank business account included.
- Ideal for launching regulated crypto advisory or intermediary services under FSCA compliance.
South Africa FSCA Authorised FSP for Sale
- Category I non-automated advice and intermediary services on shares, bonds and derivatives.
- Category II discretionary management of shares bonds and derivatives.
- Clean licence never used fast transfer.
- Suitable for brokerage asset management advisory and trading operations.
- Fully compliant with FSCA requirements.
Category I Financial Services Provider (FSP) for Sale
Authorized activities: advice and intermediary services. Approved financial products:
- Long-Term Insurance (Subcategories A, B1, B2, C)
- Short-Term Insurance (Personal and Commercial Lines)
- Retail Pension and Pension Fund Benefits
- Shares, Bonds, Money Market Instruments, Debentures, Warrants, Derivatives
- Collective Investment Schemes
- Long-Term and Short-Term Deposits
Scope: Licensed to provide financial advice and intermediary services across all listed financial product categories.
FSCA Category I FSP for Sale
- Fully authorised under the FSCA. Licensed for non-automated advice and intermediary services across multiple products, including:
- Long-term and short-term insurance (personal and commercial lines)
- Pension and retirement benefits
- Collective investment schemes and hedge funds
- Bonds, shares, derivatives, structured and money market instruments
- Longand short-term deposits
Suitable for financial, insurance, or investment businesses seeking an approved FSCA structure.
South Africa FSCA Business for Sale
- Category 1.13 – Trade derivatives & offer hedging
- Category 1.18 – Manage structured deposits & interest-bearing accounts
- Broker agreements with Absa & Capitec
- Import/export-focused operations for fund transfers in/out of South Africa
- Revenue model: up to 1% margin on FX payments
- Fully compliant with FSCA & SARB
South Africa FSP — licences, guides and resources
Key Takeaways for FAIS Category I & II in South Africa
- Clear scope difference. Category I covers advice/intermediary without discretion; Category II allows discretionary management under signed mandates, including crypto assets declared financial products in 2022.
- Regulator and rules. The FSCA licenses under the FAIS Act with Fit-and-Proper standards (RE exams, competence, CPD) and AML duties under the FIC Act and Travel Rule effective 30 April 2025.
- Costs and timelines. Official fees: Cat I R2,697 and Cat II R16,313; plan ~2–6 months from a complete file plus KI approvals, RE exam costs, compliance buildout, levies, and banking onboarding.
- Operational obligations. Cat II must run liquidity calculations and mandate governance; all FSPs maintain CPD, file returns, and keep a current RMCP with sanctions screening and reporting.
- Business climate. FATF grey-list removal (24 Oct 2025) improves banking optics; headline taxes remain 27% corporate income tax and 15% VAT, so budget for fiscal and levy outlays.
- Two paths with support. Legasset helps you buy a ready-made FSP or apply for a new licence, covering scope design, filings, policies, RE readiness, Travel-Rule tooling, and post-licence reporting.
What You Need to Know About the FAIS Category I & II Licence in South Africa
Table of Contents
Under the FAIS Act, the FSCA licenses Category I for advice/intermediary services and Category II for discretionary portfolio management. Cat I suits brokers and platforms that advise or place orders without a mandate. Cat II covers managers who invest client assets under a signed mandate.
Typical permitted activities:
- Cat I: advice, execution of client instructions, product distribution.
- Cat II: portfolio construction, rebalancing, trading across approved classes, including crypto assets.
Key limits upfront: no discretion under Cat I; Cat II must hold signed mandates and comply with reporting and liquidity rules. Both face RE exams, fit-and-proper competence, and AML duties. Crypto assets are financial products since 19 Oct 2022.
Why now: FATF grey-list removal on 24 Oct 2025 improves banking optics, while FIC Directive 9 enforces the Travel Rule from 30 Apr 2025. Expect tighter onboarding but clearer standards.
Typical timelines and costs: plan ~2–6 months from a complete file. Current FSCA application fees: Cat I R2,697 and Cat II R16,313. Budget for RE exam fees and annual levies.
Regulatory framework, tax, and supervisory expectations
Regulator: Financial Sector Conduct Authority (licensing and conduct). Primary law: Financial Advisory and Intermediary Services Act with Fit-and-Proper rules in BN 194 of 2017. AML supervision aligns with FIC Act and Directive 9 for crypto transfers.
Tax environment: 27% corporate income tax and 15% VAT as maintained in 2025. South Africa’s common-law system and deep capital markets support institutional-grade governance, but compliance is documentation-heavy.
Operational notes competitors often miss: Cat II managers must file liquidity calculations and keep mandate governance tight. Cat I firms should document advice suitability and class-of-business training. Banking access is improving post-delisting, yet onboarding remains risk-based.
You can purchase a ready-made Cat I or Cat II entity for faster entry, or apply for a new licence tailored to your services. We support both paths end-to-end—scope, filings, policies, RE readiness, and operational setup—so you can move to the requirements stage with confidence.
Eligibility Requirements for Obtaining a FAIS Category I & II Licence
Both local and foreign-owned companies may apply, provided the applicant is an incorporated entity with effective management and records available in South Africa. You must appoint at least one Key Individual with the right competence and pass the relevant Regulatory Examinations (RE1 for Cat I KIs; RE3 for Cat II KIs), meeting the BN 194 Fit-and-Proper standards on honesty, experience, qualifications, and operational ability.
Financial soundness and ongoing obligations
FAIS sale does not impose a one-size capital number. Instead, solvency/liquidity tests apply, with Cat II subject to periodic liquidity calculations and tighter mandate governance. All FSPs must maintain adequate resources, submit required returns, and keep client assets and records safe. If you offer crypto-asset services, implement Travel Rule controls under FIC Directive 9 from 30 April 2025.
Local presence and compliance oversight
Non-sole-proprietor FSPs must appoint an FSCA-approved compliance officer; approval follows a phased process with minimum experience criteria. You must also register with the Financial Intelligence Centre and file AML reports per the FIC Act. Banking onboarding has improved after FATF delisting (24 Oct 2025), but remains risk-based.
Required documents and submission
Expect: constitutional documents, UBO disclosures, KI and representative CVs and RE results, qualifications recognition (where needed), RMCP and compliance manual, business plan, policies for conflicts, outsourcing, and cybersecurity. Foreign corporate documents typically require notarisation/apostille. Applications and updates are lodged via the FSCA licensing portal.
Timelines, fees, and hidden costs
Plan ~2–6 months from a complete file. Official application fees: Cat I R2,697 and Cat II R16,313, plus KI approval and exam fees, and annual FSCA levies. Budget for AML tooling, potential audit costs, and banking due-diligence expenses that competitors often omit.
Common challenges and solutions
Typical hurdles include demonstrating practical competence for KIs, drafting a credible RMCP, and evidencing operational ability. We mitigate these with RE preparation, document templates aligned to BN 194, and Travel-Rule-ready procedures for crypto flows.
Pros & Cons of Acquiring a FAIS Category I & II Licence in South Africa
+ Recognised FSCA regime. Operate under the FAIS Act with clear categories: Cat I for advice/intermediary and Cat II for discretionary management, including crypto assets declared financial products in GN 1350 of 2022.
+ Improved banking optics. South Africa was removed from the FATF “grey list” on 24 Oct 2025, supporting correspondent banking and PSP onboarding.
+ No fixed capital floor. FAIS applies fit-and-proper financial soundness and liquidity tests instead of a blanket minimum; Cat II follows stricter liquidity calculations, easing entry relative to regimes with high paid-up capital.
+ Defined costs and timelines. 2024 fee schedule: Cat I R2,697; Cat II R16,313. Realistic authorisation planning is 2-6 months for a complete file.
+ Crypto-ready compliance. The Travel Rule applies from 30 Apr 2025, giving regulated firms a clearer framework for cross-border crypto transfers.
– Strict competence bar. Key Individuals must meet BN 194 of 2017 requirements, pass RE exams (RE1 for Cat I KIs, RE3 for Cat II KIs), and evidence experience—often the longest critical path.
– Ongoing reporting load. Cat II managers face periodic liquidity calculations and mandate governance; all FSPs maintain CPD, COB/product training, and timely returns—resources and tooling add real costs.
– Banking still risk-based. Delisting helps, but several banks remain conservative with crypto flows; many firms maintain multi-PSP setups and enhanced AML monitoring to pass onboarding.
– Scope limitations. Cat I cannot exercise discretion; Cat II is not a deposit-taker and does not replace CIS manager authorisation or licensed custody arrangements—operators must structure nominees/custodians correctly.
– Hidden operational costs. Budget beyond FSCA fees for RE sittings, compliance officer approval, annual levies, Travel-Rule implementation, and potential external audits.
How to Get a FAIS Category I & II Licence in South Africa
Step-by-Step Licensing Process in South Africa
- Step 1: Decide Pathway and Scope 1-2 weeks
Select Cat I, Cat II, or both. Confirm product sub-classes, including crypto assets if relevant. For ready-made, we assess licence conditions and gaps. For a new file, we map services to FAIS categories.
Key Documents: service map, target products, client types, draft mandate for Cat II.
Estimated Cost: advisory scoping R25,000–R45,000.
Timeline: 1–2 weeks. - Step 2: Incorporation or Target FSP Due Diligence 1-3 weeks
For new licences, form a local entity and appoint directors. For ready-made, complete corporate and compliance due diligence and agree SPA terms. Prepare Key Individual candidates early.
Key Documents: CIPC docs, UBO disclosures, director KYC, SPA and warranties for ready-made.
Estimated Cost: incorporation and notary R8,000–R20,000; due diligence R30,000–R60,000.
Timeline: 1–3 weeks. - Step 3: Competence and Exams (BN 194) 2-6 weeks
Confirm qualifications and experience. KIs sit RE exams: RE1 for Cat I, RE3 for Cat II. Arrange class-of-business and product training. Fill experience gaps with documented supervision plans.
Key Documents: CVs, qualifications, RE bookings/results, training records.
Estimated Cost: RE exam ±R1,300 per sitting; training R5,000–R15,000 per person.
Timeline: 2–6 weeks depending on exam slots. - Step 4: Compliance Framework and AML Setup 2-4 weeks
Draft the RMCP, conflicts policy, outsourcing policy, cybersecurity controls, and mandate governance for Cat II. Register with the Financial Intelligence Centre. For crypto, implement Travel Rule procedures and tooling.
Key Documents: RMCP, compliance manual, mandate templates, vendor contracts, FIC registration proof.
Estimated Cost: policy suite R35,000–R75,000; Travel Rule tooling R1,500–R6,000 monthly.
Timeline: 2–4 weeks. - Step 5: FSCA Application or Variations 2-6 months
New licence: submit FAIS application via the FSCA portal and pay fees. Ready-made: file ownership, KI, representative, and business change notifications. Respond to FSCA queries promptly.
Key Documents: application forms, financial forecasts, liquidity model, KI approval forms, proof of fees.
Estimated Cost: official fees Cat I R2,697; Cat II R16,313; KI approval ±R1,460 each; legal filing support R25,000–R60,000.
Timeline: 2–6 months from complete file. - Step 6: Banking and Payment Rails 3-8 weeks
Begin bank and PSP onboarding early. Crypto-facing models may face longer KYC. Use interim EMI solutions where appropriate. Align onboarding packs with RMCP and sanctions screening.
Key Documents: bank KYC pack, policies, licences, client flows, sanctions controls.
Estimated Cost: onboarding support R10,000–R30,000; EMIs monthly R1,000–R5,000.
Timeline: 3–8 weeks, longer for crypto exposure. - Step 7: FSCA Queries and Grant of Licence 2-8 weeks
Address information requests within stated periods. For Cat II, ensure signed client mandate templates and trade controls. On approval, check licence conditions and product classes.
Key Documents: RFIs responses, updated policies, proof of governance fixes.
Estimated Cost: legal response rounds R10,000–R25,000.
Timeline: 2–8 weeks for review rounds. - Step 8: Post-Licensing Activation and Ongoing Duties Ongoing
Activate representatives, finalise insurer or custodian arrangements if used, and schedule reporting. Maintain CPD cycles and liquidity calculations for Cat II. For crypto assets, keep Travel Rule monitoring live.
Key Documents: representative registers, CPD logs, liquidity returns, AML reports.
Estimated Cost: annual FSCA levies vary by size; compliance officer retainer R6,000–R20,000 monthly; audit where applicable R40,000–R120,000.
Timeline: ongoing.
Full process summary
- Plan 3–6 months end-to-end for a new licence, faster for a ready-made subject to FSCA variations. Budget beyond official fees for exams, compliance buildout, banking onboarding, and potential audits. We structure both routes to meet FAIS sale and FIC expectations, then support your first supervisory cycle.
Post-Licensing Compliance Obligations for FAIS Category I & II in South Africa
Licensing is the start, not the finish. Under the FAIS Act and FIC Act, FSPs must meet ongoing governance and reporting duties or face fines, suspension, or licence withdrawal. Crypto-facing firms must also keep Travel Rule controls active from 30 April 2025.
- AML/KYC and monitoring. Maintain a current RMCP, register with the Financial Intelligence Centre, perform risk-based KYC, screen sanctions, and file required reports. For crypto flows, implement originator-beneficiary data sharing and evidence it in reviews.
- Competence and oversight. Keep Key Individuals and representatives compliant with CPD each cycle and required RE timelines. Non-sole-proprietor FSPs must retain an FSCA-approved compliance officer and document advice suitability or Cat II mandate governance.
- Regulatory filings and audits. File annual financial statements and compliance returns on time. Cat II prepares periodic liquidity calculations and controls around client mandates, trading, and reconciliations. Expect themed inspections and information requests.
- Tax and levies. Budget for 27% corporate income tax, 15% VAT where applicable, and annual FSCA levies. Keep accounting, client money, and segregation records audit-ready.
- Changes and notifications. Notify the FSCA before material changes, including shareholders, directors, Key Individuals, product classes, or outsourcing. FAIS authorisations are ongoing, but conditions and levies apply annually.
How we help. We operate a compliance calendar, prepare filings, run CPD and RE tracking, update policies, and implement Travel Rule tooling. Our team supports inspections, variations, and post-licence banking reviews so operations stay audit-ready year round.
Common Pitfalls and Challenges of Operating Under a FAIS Category I & II Licence in South Africa
This licence brings clear benefits, but operations need careful planning. Most issues arise after approval, not during licensing. With the right structure, each challenge is manageable.
- Banking and payments. Several banks remain cautious with crypto exposure. Onboarding can take weeks and may require multi-PSP coverage. We prepare EMI contingencies and align packs to the RMCP and sanctions controls.
- Competence and staffing. Key Individuals must meet BN 194 experience and RE rules. Replacements or expansion often trigger FSCA notifications. We plan KI succession, supervision, and CPD tracking from day one.
- Scope limits. Cat I cannot act with discretion. Cat II needs tight mandate governance and may require third-party custody. We map product sub-classes, nominee structures, and outsourcing agreements early.
- Reporting and audits. Cat II liquidity calculations, annual financials, and themed inspections add real workload. Hidden costs include Travel Rule tooling and periodic policy refresh. We run a compliance calendar and handle review packs.
- Regulatory change and cross-border marketing. FSCA rules evolve and there is no passport. Marketing into high-risk jurisdictions can trigger extra checks. We maintain update briefings and build geo-restrictions into procedures.
FAQ About Purchasing a FAIS Category I & II Licence in South Africa
What does a FAIS Category I & II licence in South Africa allow?
Category I covers advice/intermediary services without discretion. Category II permits discretionary portfolio management under client mandates. Crypto assets are treated as financial products since 19 Oct 2022, so relevant services fall under FAIS. Next step: define your product classes and whether crypto is in scope.
How much does a FAIS Category I & II licence in South Africa cost and how long does approval take?
Official FSCA fees are Cat I R2,697 and Cat II R16,313. Add RE exams, KI approvals, compliance buildout, and annual levies. Real cases run ~2–6 months from a complete file; complex crypto models can take longer. We provide a phased budget so you see all costs upfront.
What ongoing compliance applies after I buy a ready-made FSP in South Africa?
Post-acquisition you must maintain fit-and-proper competence, CPD, and file returns on time. Cat II firms complete liquidity calculations and keep mandate controls tight. Under the FIC Act, operate a current RMCP, register with the FIC, and apply Travel Rule controls for crypto transfers.
Are there banking or operational limitations for a FAIS crypto licence in South Africa?
Banks remain selective with crypto exposure. Onboarding can take weeks and may require multiple PSPs or EMIs. Mitigate by aligning packs to your RMCP, sanctions screening, and transaction monitoring. We pre-stage banking files and introduce crypto-tolerant providers where appropriate.
Do FAIS Category I & II licences in South Africa need renewal, and can I change ownership or services later?
FAIS authorisations are ongoing; there’s no fixed renewal date, but annual levies and reporting apply. Ownership changes, new Key Individuals, or added product classes require FSCA notifications/approvals. Plan timeline buffers for variations to avoid service gaps.
How can Legasset help with a ready-made FAIS licence in South Africa—or getting one from scratch (incl. MiCA)?
We offer both: purchase of a ready-made FSP or full-scope applications with entity setup, KI and RE planning, policy drafting, and filings. For EU strategies, we handle MiCA applications and transition support for crypto businesses. We also implement Travel Rule tooling, banking onboarding, and a compliance calendar so you remain audit-ready.
Additional Links and Resources for FAIS Category I & II Licence in South Africa
The FSCA is South Africa’s main financial regulator overseeing Financial Services Providers (FSPs). This page explains licensing procedures for Category I and II firms, fit-and-proper requirements, and post-approval obligations under the FAIS Act.
II. Government Gazette 47334 – Declaration of Crypto Assets as Financial Products (GN 1350 of 2022)
Official notice issued by the South African government declaring crypto assets as financial products under the FAIS Act. It defines the legal basis for crypto-asset licensing and supervision by the FSCA.
III. Financial Intelligence Centre (FIC) – Directive 9 of 2024 on the Travel Rule
Directive 9 enforces Travel Rule compliance for crypto-asset service providers from 30 April 2025. It outlines AML/CFT obligations, data-sharing duties, and monitoring standards for all licensed FSPs handling crypto transactions.
IV. Independent Regulatory Board for Auditors (IRBA) – FAIS Section 19(3) Audit Guide
This official guide details audit and assurance requirements for FAIS-licensed entities. It explains submission procedures, timelines, and compliance expectations under Section 19(3) of the FAIS Act.
V. National Treasury of South Africa – Corporate Income Tax and VAT Guidelines
South Africa’s Treasury portal covering national fiscal policy, 27 % corporate income tax, and 15 % VAT obligations. It offers resources on tax filings, levies, and financial governance standards relevant to authorised FSPs.
