Guiding consumers since 2009

What does it mean to be a registered Financial Services Provider?

By Isabelle Coetzee

You may have noticed that financial institutions state that they’re registered Financial Services Providers (FSP). But what does this actually mean, and how does this benefit you as a consumer?

We got in touch with a certified financial planner to find out how the financial industry is regulated and what you can do to keep them in check.

Tip: You can take out a personal loan from a registered FSP by clicking here.

What is an FSP and what does an FSP number mean?

A Financial Services Provider includes any institution that offers financial advice or offers personal finance products, such as insurance, investments, or loans.

According to Reagan Mitchell, certified financial planner and managing director of WealthyMe, each FSP is allocated a unique number by the FSCA (Financial Services Conduct Authority).

“Financial Services Providers need to disclose their FSP number in all marketing and other official documentation when dealing with the public,” says Mitchell.

“An FSP number is an indication that the holder of the FSP number meets the stringent requirements as set out by the FSCA to be licensed in order to provide financial services and advice,” says Mitchell.

He explains that obtaining an FSP license is a difficult process, and that the requirements include things like experience, qualifications, ethics, operational ability, financial soundness, and competence.

“It’s important for members of the public to always deal with a registered FSP when seeking financial advice,” he adds.

How to check an FSP number

Mitchell says that an FSP license number is something that should be maintained on an annual basis by the holder of the license number.

“The FSCA can at their discretion withdraw or suspend a license if the FSP doesn’t meet the ongoing requirements of being an FSP,” says Mitchell.

Therefore, if you suspect a Financial Services Provider is not meeting the FSCA’s standards, you can report them to the regulatory body, who will then investigate their practices.

Mitchell highlights that members of the public can go onto the FSCA’s website to verify whether the FSP number used by a company is indeed a registered FSP. The website can be accessed here.

You can also lay a complaint against a registered Financial Services Provider by going to this site and filling out the form.

If you need a personal loan from a registered Financial Services Provider, click here.

Recent Articles

Featured Four steps to rethinking your budget

We all think about budgeting at the end of each month. But before we know it, the new month has started. When last did you actually sit down and consider your spending habits?

Why can fund managers only invest 30% of pension funds offshore?

When you invest in your pension fund or retirement annuity, it will be placed in various asset classes. Of this, you cannot invest more than 30% of your retirement abroad. We find out why.

Who should be the main member on your medical aid?

Medical aid plans are designed to accommodate families. But if you have two adults on the same medical aid plan, how can you decide who should be the main member?

Your retirement savings could be the key to owning a home

Many people would love to become home owners but don’t know or have the means to do so. However, there are many ways, and one of them includes using your pension or retirement savings to secure a home loan.

Deals

Clicks Covid antibody test for R199

Price: R199
When: Daily
Where: Nationwide

2 Steaks for the price of 1 at Tiger’s Milk

Price: From R159
When: Thursdays
Where: Cape Town

Da Vinci's Monday Wings Special

Price: R145
When: Mondays
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions