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Risk Disclosure Checklist: FSCA Requirements

Quick Overview

South-African brokers must hand every client an FSCA risk disclosure that explains leverage, margin calls, liquidity gaps and derivative complexity before the first trade is placed. The wording flows from the FAIS Act and FSCA guidance notes, which separate factual information (allowed) from advice (regulated). This one-hour session walks through a practical checklist you can apply to any disclosure form—no signals, no recommendations—keeping the content squarely inside FAIS “factual-information” rules

What You’ll Learn

  1. Core headings every notice needs — product nature, leverage effect, liquidity risk and margin policy, as set out in recent FSCA circulars

  2. Leverage math & margin-call triggers — how brokers calculate 100 % / 50 % levels and why those figures appear in disclosures

  3. Currency & volatility warnings — explaining pip value swings and gap risk with factual, numeric examples (no forecasts)

  4. Client declarations — the signature block the FSCA expects, acknowledging reading and understanding of all risks finra.org.

  5. Annual review cadence — how often disclosures must be refreshed to reflect margin-policy or regulatory changes

Why It Matters

A clear FSCA risk disclosure protects traders by spelling out worst-case scenarios and protects brokers from enforcement action when the facts are acknowledged up-front suidkaapforum.comfsca.co.za. Understanding each clause helps clients spot gaps—like missing liquidity warnings—that could void later complaints brokstock.co.za.

Speaker

Brandon Lurie — professional trader, analyst and RE 5 candidate, known for turning dense compliance text into plain-language checklists while remaining strictly factual.

Extra Resources

Disclaimer: This webinar provides general, factual information and does not constitute financial advice as defined in the FAIS Act. Margin trading carries risk. Always consult a licensed FSP before acting on factual data presented.