Why a South African Introducing Broker Gets Fined When the Platform is Offshore

A common misunderstanding in the international brokerage space: "if the platform is offshore, local regulations don't apply to our introducing business." The FSCA (Financial Sector Conduct Authority) of South Africa takes a clear position: if you are soliciting clients, referring clients, or providing any financial service in South Africa, you require a FSCA licence — regardless of where the execution platform sits. The key principles regulators apply: • Where is the client relationship managed? • Where is the marketing and client acquisition taking place? • Who receives commission or referral fees from the client relationship? If the answer is "South Africa," local licensing requirements apply. The practical lesson for offshore structures with local distribution: licensing the local operation properly, ensuring segregation of activities, and documenting the nature of the introducing arrangement are all essential compliance steps. Marensa advises on multi-jurisdiction structures involving introducing broker arrangements across UAE, Mauritius, UK, South Africa, and other markets.