How to start a financial services business
Insurance brokers, financial advisers, lenders and debt counsellors are all in demand, and all heavily regulated, because they handle people's money. Here is which licence or registration applies to what you want to do.
Advice and intermediary services: the FSP licence
Giving advice or acting as an intermediary on financial products (insurance, investments, retirement funds, medical aid, crypto assets and more) requires you to be an authorised financial services provider (FSP) licensed by the Financial Sector Conduct Authority (FSCA) under the FAIS Act, or a representative working under one.
Start as a representative
Most advisers start as a representative under an existing FSP, meeting the fit and proper requirements: qualifications, the regulatory examinations, experience and continuous professional development. Running your own FSP adds key individual requirements, compliance oversight and capital requirements, so build experience first.
Lending and debt counselling: the NCR
If you lend money and charge interest or fees, you will generally need to register as a credit provider with the National Credit Regulator (NCR). Debt counsellors must also register with the NCR. Lending without registration can make your credit agreements unenforceable.
Trust is the product
- Never handle client money unless your licence and systems allow it.
- Disclose fees and commissions clearly.
- Keep records of advice given and why.
- Put your FSP or NCR number on every document, and make it easy for clients to check.
Get found by the right clients
Referrals from accountants, estate agents and lawyers are the core of most practices. A free verified BizBoost listing shows clients you are a checked, registered business, which matters in a field full of scams.
Common questions
Do I need an FSP licence to sell insurance in South Africa?
Yes. Advice and intermediary services on financial products, including insurance, require an FSP licence from the FSCA, or acting as a representative of a licensed FSP.
Do I need to register with the NCR to lend money?
If you lend money and charge interest or fees, you will generally need to register with the National Credit Regulator as a credit provider. Debt counsellors must register too.
How do I become a financial adviser?
Work as a representative under a licensed FSP while meeting the fit and proper requirements: recognised qualifications, regulatory examinations, experience and ongoing professional development.