FSA — Financial Services Authority
Seychelles | Indian Ocean (Offshore) | Founded 2013
What is the FSA?
The FSA Seychelles regulates non-bank financial services in the Republic of Seychelles. It has become one of the most popular offshore jurisdictions for forex brokers, particularly those serving clients in Africa, Asia, and the Middle East. The Seychelles offers a relatively fast licensing process and lower capital requirements compared to established regulators. While the FSA has been improving its regulatory framework, it still provides significantly less protection than Tier 1 regulators.
What the FSA Does
Licenses securities dealers, including forex and CFD brokers
Maintains a register of regulated entities and publishes warnings about unauthorised firms
Sets capital requirements for licensed entities (lower than Tier 1 jurisdictions)
Enforces AML/KYC compliance
Can suspend or revoke licences and impose penalties
Has been working to improve its regulatory standards in recent years
What the FSA Protects You From
Completely unregistered operators — an FSA licence confirms the broker has met basic registration requirements
AML failures — the broker must verify your identity and source of funds
The FSA publishes scam warnings, which can help you avoid known fraudulent entities
What the FSA Does NOT Protect You From
Trading losses or poor execution — the FSA does not set specific conduct standards for retail forex comparable to MiFID II
There is no investor compensation scheme — no fund to reimburse you if the broker goes bankrupt
No leverage limits — brokers can offer any leverage level, including extremely risky ratios
No negative balance protection requirement
Limited complaint resolution — the FSA has a small team and limited resources for handling international retail complaints. Getting a resolution from Africa is very difficult
Fund segregation is required but enforcement and auditing capacity is limited compared to established regulators
Key Requirements for FSA-Regulated Brokers
Obtain a Securities Dealer licence from the FSA
Maintain minimum paid-up capital (currently USD 50,000 for a restricted licence, USD 100,000 for unrestricted)
Comply with AML/CFT legislation
Submit audited annual financial statements
Maintain a registered office and at least one director in Seychelles
Implement client money segregation procedures
Investor Compensation Scheme
Seychelles has no investor compensation scheme for retail forex clients. If an FSA-licensed broker becomes insolvent, you must rely on the insolvency process to recover funds — a process that is slow, uncertain, and practically inaccessible for most retail traders in Africa.
Jurisdiction Warning
Seychelles has become the go-to offshore jurisdiction for many brokers that also hold FCA, CySEC, or ASIC licences. These brokers typically route African clients to their Seychelles entity specifically because the regulatory requirements are lighter. This is not illegal, but it means you receive weaker protections than clients in Europe or Australia using the same brand.
Note for African Traders
Many of the big-name brokers you see advertised in Africa operate their African-facing business through a Seychelles entity. When a broker says "regulated by FCA and FSA Seychelles," the FCA regulation almost certainly does not apply to you — your account will be under the Seychelles entity. This is the single most common way African traders end up with weaker protections than they expect. Always ask: "Which entity will hold my account?" and check whether it's the Seychelles one.
How to Verify a Broker's FSA Licence
Go to the FSA Seychelles website and navigate to Regulated Entities > Securities Dealer. Search for the broker by name or licence number. The FSA also publishes a list of entities that have been warned or sanctioned.
Open FSA Register