Top Three Reasons FSP Licence Applications Get Declined

Applying for a Financial Services Provider licence is an important step for any business in the financial services industry. However, not every application is successful. Many applications are declined due to avoidable errors or oversights. Understanding the main reasons for rejection can help applicants prepare thoroughly and improve their chances of approval.

Here are the top three reasons FSP licence applications get declined:

1. Key Individuals Do Not Meet Fit and Proper Requirements

The FSCA requires that all key individuals demonstrate they are fit and proper to manage a licensed entity. Applications are often declined when the nominated key individual:

• Lacks the necessary experience or qualifications

• Fails background or regulatory checks

• Cannot demonstrate honesty, integrity, or financial soundness

Ensuring that your key individual meets all FSCA fit and proper requirements is essential before submitting an application.

2. Incomplete or Incorrect Documentation

Many applications are rejected because supporting documents are missing, incorrectly completed, or do not comply with FSCA requirements. Common issues include:

• Policies and procedures that are not properly drafted

• Application forms filled out incorrectly

• Submission of the wrong documents or incomplete information

Attention to detail and verifying all documents before submission can prevent unnecessary declines.

3. Failure to Make Required Disclosures

The FSCA places high importance on honesty and integrity declarations. Applications are often declined when:

• Important disclosures are omitted

• Potential conflicts of interest are not declared

• Relevant past events affecting honesty or integrity are not disclosed

Full transparency is critical. Disclosing all relevant information protects your application and demonstrates accountability to the FSCA.

Why You Need an Expert Licence Application Consultant

FSP licence applications can be complex and time-consuming. That is why you need an expert licence application consultant. At FSPCOMPLY, we help you do the heavy lifting: ensuring key individuals meet requirements, drafting proper policies and procedures, and making sure all disclosures are accurately submitted.

With the right guidance, you can avoid common pitfalls, reduce delays, and increase your chances of a successful FSCA licence approval.