Capital Markets & Trading in South Africa

Key dates

2026-03-02

FSCA press release and imposition of the administrative penalty

2026-10-01

Reported month for the Financial Services Tribunal reconsideration hearing

Suggested considerations

• Compliance teams may wish to review governance over financial statement preparation, approval, and publication, especially where multiple senior officers share responsibility.
• Boards and audit committees may wish to map who owns key judgments, assumptions, and escalation points for periodic reporting and integrated reports.
• Firms may wish to test whether disclosure controls cover annual reports, half-year statements, and market communications as a single control environment.
• Groups with complex structures may wish to examine how reporting responsibilities are allocated across parent and subsidiary functions before consolidated reports are issued.
• Senior management may wish to reassess personal accountability exposure for false or misleading market disclosures under South African market conduct law.
• Compliance functions may wish to monitor the Tribunal reconsideration process because the FSRA suspension mechanism affects the practical status of the penalty pending outcome.

What changed

This is an enforcement action, not a new rule or consultation. The FSCA found contraventions of sections 81(1)(a) and 81(1)(b) of the Financial Markets Act, 19 of 2012, which prohibit the direct or indirect making or publication of false, misleading or deceptive statements. The penalty was imposed under section 167(1)(a) of the Financial Sector Regulation Act, 9 of 2017, and includes reimbursement of the FSCA’s reasonable costs incurred in connection with the contravention.

Suggested considerations

• Compliance teams may wish to review whether CFD or other derivative activities are carried on only under the correct FAIS authorisation.
• Firms may wish to check whether any group company, introducer, representative, or outsourced provider is performing regulated financial services without a licence.
• Institutions offering online trading may wish to test whether client withdrawal, fund-handling, and complaint processes operate as described to customers.
• Authorised firms may wish to revisit debarment escalation, fit-and-proper controls, and key-person oversight where misconduct could involve unauthorised activity.
• Firms may wish to review public disclosures, licence references, and product descriptions so customers are not misled about authorisation status.

What changed

The FSCA found that Palime and MZP Markets rendered financial services by trading Contracts for Differences on behalf of clients without the necessary licence. The Authority concluded that this conduct materially contravened section 7(1)(a) of the Financial Advisory and Intermediary Services Act 37 of 2002. As a result, Palime was debarred from the financial services industry for 15 years. MZP Markets was issued an administrative penalty of R1,000,000 inclusive of costs.

Key dates

2026-06-15

The Financial Services Tribunal summarily dismissed the reconsideration application

2026-05-21

FSCA press release issued announcing the enforcement action

Suggested considerations

• Compliance teams may wish to map referral, lead-generation, and affiliate arrangements to assess whether the practical activity could be viewed as intermediary services rather than a pure introduction.
• Firms may wish to review digital marketing content, especially where potential returns or investment opportunities are promoted online.
• Businesses could consider whether staff or contractors who collect FICA documents, onboard clients, or answer product questions are performing regulated functions that require authorisation.
• Firms may wish to test whether commission structures tied to successful transactions increase the risk that an arrangement is characterised as regulated distribution rather than marketing support.
• Groups using third parties for introductions may wish to clarify contractual roles and operational boundaries, because the regulatory analysis may turn on conduct in practice rather than the label used in the contract.
• Where cross-border or offshore products are involved, firms may wish to review whether local authorisation, disclosures, and client-facing controls are sufficient for the nature of the offering.

What changed

The publication does not introduce new rules or amend the FAIS framework. It reports an enforcement outcome in which the FSCA concluded that Equitos Group and Linder were acting as referral agents for offshore UK property developers, promoting unlisted offshore property-linked investments, earning commission on successful referrals, and going beyond introductions by collecting and processing FICA documentation, facilitating client onboarding, and managing investor queries.

Key dates

2026-06-24

FSCA decision to provisionally withdraw the FSP licence of Mixirite (Pty) Ltd (licence number 52110), pending completion of an investigation and consideration of the firm’s submissions

Suggested considerations

• Firms should consider reviewing their sales practices for online trading and call-centre channels to identify and remediate any aggressive, manipulative or high-pressure techniques that could be viewed as creating client harm or mis-selling risk.
• Compliance teams may wish to confirm that all financial advice and intermediary activities are provided only by authorised representatives recorded under the firm’s FSP licence, including where services are delivered through outsourced call centres, affiliates or introducing brokers.
• Firms should consider assessing marketing materials, scripts, social-media promotions and platform messaging to ensure they do not imply guaranteed or unrealistically high returns, particularly for leveraged or speculative products such as forex and CFDs.
• Compliance teams may wish to test whether suitability and needs analyses are being performed consistently for relevant advice and intermediary services, and whether these assessments are properly documented in client files before onboarding or product activation.
• Firms should consider strengthening risk disclosures for retail clients trading leveraged or speculative products so that warnings are prominent, product-specific, understandable and aligned with the actual risks of loss and volatility.
• Control and supervisory functions may wish to enhance monitoring of representatives and introducers, including review of sales calls, chats and digital onboarding journeys, to detect patterns of pressure selling, misrepresentation or advice by unauthorised persons at an early stage.
• Firms operating online trading platforms should consider checking that their licence status, scope of authorisation and platform branding are clearly and accurately presented to clients, and that no impression is created that activities fall outside the authorised categories under the FAIS Act.
• Compliance teams may wish to document how their current controls address the conduct themes highlighted by the FSCA (authorised status, advice boundaries, sales conduct, suitability and risk disclosure) to be able to demonstrate a proactive approach in the event of supervisory queries or thematic reviews.

What changed

The FSCA has imposed a provisional withdrawal of Mixirite (Pty) Ltd’s authorisation under its FSP licence, effectively prohibiting the firm from carrying on further financial services business or receiving additional client funds while an investigation is ongoing. This is not a rule change but an enforcement and supervisory step under the Financial Advisory and Intermediary Services (FAIS) Act and the broader FSCA conduct mandate, and it immediately restricts Mixirite’s ability to provide intermediary services or advice to retail clients through its online platforms.

Key dates

2026-07-02

FSCA press release announcing the provisional withdrawal of Imermarket (Pty) Ltd's FSP licence

Suggested considerations

• Compliance teams may wish to review whether sales scripts, call-centre processes, and incentive structures could create pressure-selling risk.
• Firms may wish to confirm that only authorised representatives provide regulated financial advice and intermediary services.
• Firms offering complex or high-risk products may wish to test whether suitability and needs-analysis records are completed consistently and contemporaneously.
• Firms may wish to assess whether risk disclosures are clear, prominent, and sufficient for clients to understand leverage, loss, liquidity, and exit constraints.
• Operations teams may wish to examine how withdrawal requests are logged, escalated, and resolved, including any delays or refusals.
• Boards and senior management may wish to consider whether representative oversight, complaint monitoring, and client-outcome surveillance are assigned and evidenced across the business.
• Firms using online acquisition or remote onboarding may wish to stress-test whether digital journeys can evidence informed consent without undue pressure or misrepresentation.

What changed

The FSCA did not announce a new rule or consultation; it announced a provisional licence withdrawal under the FAIS enforcement framework. The regulator cited aggressive, manipulative and high-pressure sales tactics, advice given by people who were not authorised representatives, pressure on clients to deposit funds after raising concerns, inadequate suitability and needs analysis, insufficient risk disclosures, and failures to process withdrawal requests.

Suggested considerations

• Review and submit comments on proposed amendments using FSCA templates (e.g., to specified emails like Marius.DeJongh@fsca.co.za or FSCA.RFDStandards@fsca.co.za for older drafts; check for updates).
• Assess internal policies against changes (e.g., update JSE equities trading protocols for BookBuild/Krugerrands/access; revise CIS advertising/governance frameworks).
• For market infrastructures: Prepare recovery plans, benchmark determinations, collateral protocols.

What changed

• - Capital Markets: Proposed amendments to JSE listing requirements (e.g., Market Segmentation project, Delegation via BN 640/668 of 2024); JSE Equities Rules changes for Off-Book BookBuild Trades (BN...
• Collective Investment Schemes: Draft exemptions and conduct standards for advertising/marketing/disclosure (closing 4 December 2020), governance/fit and proper requirements (closing 15 February...