The primary legislation applying to each of the different types of financial institutions and financial services providers generally sets out the specific requirements that an applicant for a specific financial sector license must satisfy. Broadly speaking, the following requirements must be met to the satisfaction of the sector-specific authority:

• Fit and proper – The applicant must provide the FSCA with information evidencing that the fit and proper requirements have been satisfied in respect of the personal character, competence, operational ability and financial soundness of the individual applying for a license or key individuals or management of a legal entity applying for a license. The individual requirements will, however, vary according to the type of license sought by the applicant.
• Assets and resources – The applicant must implement an effective and reliable infrastructure and have adequate assets and resources within South Africa to ensure that it will comply with the requirements of financial sector laws in relation to the license. Relevant resources include financial, management and human resources with appropriate experience to perform its licensed function.
• Governance arrangements – Governance arrangements must, inter alia, be clear and transparent, promote the safety and efficiency of the financial market infrastructure, and support the stability of the broader financial system, while taking into account relevant public interest considerations and the objectives of relevant stakeholders.
• Surveillance, supervision and monitoring – The applicant must demonstrate arrangements for the efficient and effective surveillance, supervision and monitoring of all transactions, authorized users and general compliance. The nature and scope of surveillance, supervision and monitoring arrangements that an applicant must demonstrate will depend on the specific activity that is the subject of the license application. The applicant must demonstrate that it will be able to comply with the surveillance, supervision and monitoring obligations prescribed in terms of the specific legislation applicable to authorized entities in the relevant sub-sector. 
• Risk management – The applicant must implement arrangements to efficiently and effectively monitor and manage the material risks associated with the relevant activity.

   

• Record keeping and reporting – The applicant must demonstrate that it has arranged for efficient and effective security and back-up procedures to ensure the integrity of the records of transactions.
• Prudential requirements and/or liability insurance – The applicant must comply with the minimum capital requirements or comply with the prescribed insurance, a guarantee, compensation fund or other warranty requirements, which are prescribed for the particular sub-sector under sector-specific legislation.
• Public interest – The relevant authority must consider whether issuing the license to the applicant would be contrary to the interests of financial customers, the financial sector or the public.

In terms of the FAIS Act and the Determination of Fit and Proper Requirements, financial services providers, key individuals and representatives of the provider must comply with the prescribed "fit and proper requirements." The Determination of Fit and Proper Requirements sets out the honesty, integrity and good standing; competency; operational ability; and financial soundness requirements for all financial services providers, key individuals and representatives. Individuals exercising oversight over the rendering of financial services by a financial services provider authorized under the FAIS Act (referred to as “key individuals”) or who represent the authorized financial services provider in rendering financial services to clients (referred to as “representatives”) must complete certain regulatory examinations prescribed under the Determination of Fit and Proper Requirements.