Canada    FinTech Guide    Chapter 9    South Africa

9. Analytics and Research / Data Management / Risk Management
South Africa  South Africa

Financial Services Providers win or lose with investments and/or expenditure, depending on the culture of the country at a time. South Africa’s FSPs who render investment services might not be as busy as those giving loans, for example. Wherever it is busy, the backup services and risk management will increase or be monitored constantly.

Legal Affairs

When regulated as a financial services provider, The Financial Advisory and Intermediary Services Act 37/2002 (FAIS) requires a certain level of record keeping. These requirements can also be found in Board Notices passed in respect of the Act. Risk management is also regulated by the FAIS Act, especially when it comes to investments e.g. if a client reached a certain age, losing money on risky investments is not beneficial to the client.

Financial Services Providers are accountable institutions in terms of the Financial Intelligence Centre Act 38/2001 (FIC Act) and are required to screen and risk rate clients for each transaction.

Economic Conditions

The market is big as there are many Financial Services Providers that need to comply with these requirements and should one not comply, there can be significant consequences in terms of a specific act. The Financial Intelligence Centre Act 38/2001 (FIC Act) issue fines of R100 million.

There are many companies that provide data back-up and risk management services but they are mostly separated


There will be more stringent requirements in future with the implementation of the CoFI Act (Conduct of Financial Institutions Act) and the FIC Act Amendment Bill. Fintechs will have more business opportunity when this legislation comes into force.

Contributing Authors

Garlicke & Bousfield Inc

Brian Jennings
Durban, South Africa

Search by:

Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018