Section 65 Compliance

FSCA Registration Exemption Statement

Regulatory Status Notice

BonCor is not required to be registered as a Financial Services Provider (FSP) with the Financial Sector Conduct Authority (FSCA) in South Africa, given the nature of its activities as an introducer.

1. BonCor's Role and Scope of Activities

BonCor operates strictly as an introducer entity, facilitating introductions between Asset Managers and regulated financial advisers/investment managers in South Africa.

Critically, BonCor:

  • Does not provide financial advice, construct portfolios, or engage in discretionary fund management
  • Does not contract directly with clients or handle client funds
  • Does not act as an intermediary (as defined in the FAIS Act) between clients and product providers

2. Regulatory Framework Supporting Exemption

The Financial Advisory and Intermediary Services Act, 2002 ("FAIS Act") regulates entities rendering financial services, defined under Section 1(1) as:

"...any service contemplated in paragraph (a), (b) or (c) of the definition of 'financial service provider', including any act incidental to any such service."

The FAIS Act further clarifies that "financial services" require FSCA authorisation only if they involve:

  • Advice (e.g., recommendations on financial products); or
  • Intermediary services (e.g., acting as a liaison between clients and product providers, including marketing or negotiating transactions)

3. Why BonCor's Activities Fall Outside FAIS Definitions

BonCor's activities fall outside the regulated definitions because:

No Advice or Intermediary Services

Introductions alone do not constitute regulated activities under FAIS, provided no advice, intermediary functions, or incidental services (e.g., processing applications) are performed.

No "Incidental" Services

The FSCA's Guidance Note 3 of 2021 (Exemption of Certain Persons from FAIS Act Requirements) excludes entities whose activities are purely administrative or introductory without influencing financial decisions.

4. Precedent and FSCA Guidance

The FSCA has consistently exempted introducers from registration where their role is limited to referrals without engagement in the advice or intermediary chain. Key references include:

  • Section 13(1)(c) of the FAIS Act and its accompanying Guidance Note (24 June 2015) state that representatives must act in the name of an authorised FSP. BonCor does not act as a representative of any FSP.
  • FSCA's FAIS General Code of Conduct (Board Notice 80 of 2003) regulates entities that "market" financial products, but BonCor's introductions are not "marketing" as defined, as it does not promote specific products to clients.

5. Our Commitment

In light of the above, BonCor's activities do not meet the threshold for FSCA registration under the FAIS Act. Should BonCor's role expand to include regulated activities, we undertake to reassess our regulatory status proactively and take appropriate steps to ensure compliance.

6. What This Means for Our Partners

For Asset Managers

We facilitate introductions to qualified financial advisors without providing investment recommendations or advice on your behalf.

For Financial Advisors

We connect you with asset managers and their products. All advice and intermediary functions remain with appropriately licensed FSPs.

7. Regulatory Resources

For further detail on the regulatory framework, we direct you to the following resources:

8. Contact for Regulatory Inquiries

If you have questions about our regulatory status or require further clarification, please contact us:

BonCor Compliance

Email: info@boncor.co.za

Phone: +27 87 821 7838

Address: Johannesburg, South Africa

Disclaimer

This document is provided for informational purposes only and does not constitute legal or regulatory advice. The information contained herein reflects our understanding of the applicable regulatory framework as of the date of publication. Regulatory requirements may change, and we recommend consulting with appropriate legal or compliance professionals for specific guidance.

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