The Financial Sector Conduct Authority (FSCA) is the financial regulatory authority of South Africa responsible for supervising the conduct of financial institutions and licensed Financial Services Providers (FSPs). Its primary role is to ensure fair treatment of clients, transparency, and proper market conduct within the South African financial system.
Weltrade SA (PTY) Ltd operates under FSCA regulation as a licensed intermediary, in accordance with the Financial Advisory and Intermediary Services Act (FAIS Act) and the Financial Sector Regulation Act. This means Weltrade SA (PTY) Ltd is authorised to provide intermediary services but does not act as a trading counterparty or custodian of your funds.
Read more about what license Weltrade operates under in our Help Center article.
Are my funds safer under FSCA regulation?
FSCA regulation enhances regulatory oversight, accountability, and consumer protection mechanisms, but it does not guarantee the safety of trading funds or protect clients from trading losses.
Weltrade SA (PTY) Ltd does not hold or custody your funds. All trading funds are held by a product supplier, which acts as the trading counterparty. As a result, the safety of your funds primarily depends on the financial stability and regulatory framework of that product supplier.
FSCA regulation improves supervision and complaint resolution options, but it does not eliminate:
Market risk
Counterparty risk
Insolvency risk
Is my deposit insured under the FSP license Weltrade holds?
The FSCA does not provide deposit insurance or compensation schemes for trading funds. As Weltrade SA (PTY) Ltd is licensed as a Financial Services Provider acting solely as an intermediary and not as a product supplier or trade counterparty, it is not permitted to insure client trading funds or cover trading losses. Any professional indemnity insurance held by Weltrade applies only to its regulatory and professional obligations as an intermediary and does not extend to client deposits or trading outcomes.
Key takeaways
FSCA regulation strengthens standards of conduct, transparency, and your protection, but it does not constitute a guarantee of fund safety or profitability.