Subcategory mapping
The products you will sell, mapped to the FAIS subcategories, so that nothing is applied for that cannot be evidenced and nothing is left out that you will need.
FAIS Cat I · Long-term and short-term insurance
Insurance Broker Licensing
The Category I FSP licence a long-term or short-term insurance broker needs to advise on and sell insurance products in South Africa, prepared and submitted for you.
A broker's licence is granted on its subcategories and its people.
An insurance broker is an FSP under the FAIS Act. To give advice on or render intermediary services in relation to insurance policies it needs a Category I licence with the subcategories that match its products: the long-term insurance subcategories (A, B1, B2 and C) for life, funeral, investment and risk policies, the short-term insurance personal lines and commercial lines subcategories for property, motor and liability cover, and health service benefits where medical scheme business is involved (which also needs Council for Medical Schemes accreditation). Each subcategory carries its own competence requirement for the Key Individual and every representative, which is why a broker's application is prepared from its product list outward.
RCC runs the application on the same two phases as every FSP licence application: our internal preparation of the file, then the FSCA's review with our handling of queries.
What the application needs
The file for an insurance intermediary
Key Individual
A KI who meets the fit-and-proper requirements for each subcategory: qualification, RE1, class of business training and experience in managing insurance intermediary business.
Representatives
Every adviser on the register with the right subcategories, their RE5, class of business and qualification dates, or a supervision agreement where they are still working towards them.
Professional indemnity
PI and fidelity cover in the amounts the Board Notice prescribes, or an undertaking to obtain it before trading, with the insurer's quotation on file.
Conduct framework
The General Code of Conduct policies (conflict of interest management, complaints, record keeping, disclosure) and the Policyholder Protection Rules obligations that attach to intermediaries.
Binder and outsourcing agreements
Where the broker will perform binder functions for an insurer, the binder agreement and its remuneration must fit the Insurance Act regulations and be disclosed in the application.
Alternatives and additions
Licence, juristic representative or Category IV
Not every broker needs its own licence immediately. A business can operate as a juristic representative under another FSP's licence while it builds its own track record, and a funeral administrator that administers policies without advising on them may need a Category IV licence rather than Category I. RCC scopes these options in the first conversation. Where a broker also needs an approved Key Individual or has representatives still writing their regulatory examinations, our RE exam training runs alongside the application.
After the licence
The obligations a broker carries
A licensed broker files an annual compliance report, pays the FSCA levy, keeps its register of representatives current, meets CPD and class of business requirements for every KI and representative, complies with the Policyholder Protection Rules on disclosure, claims assistance and complaints, and, where it holds client funds, with the section 10 requirements. RCC's compliance monitoring runs those obligations on a calendar for brokers of every size.
Common questions
Questions we are asked
Do I need an FSP licence to sell insurance?+
Yes. Advice on or intermediary services in relation to long-term or short-term insurance policies are financial services under the FAIS Act, and rendering them without a licence (or without being a representative of a licensed FSP) is an offence under section 7.
Which subcategories should an insurance broker apply for?+
The ones that match the products you will actually sell. Long-term subcategories A, B1, B2 and C cover funeral, risk and investment policies; short-term personal lines and commercial lines cover property, motor and liability; health service benefits covers medical scheme business. Over-applying delays the licence because every subcategory must be evidenced.
How long does an insurance broker licence application take?+
Preparation of the file depends on how ready the Key Individual, representatives and policies are; weeks for a prepared business, months where competence or cover is still outstanding. The FSCA's review then depends on its volumes and on how quickly queries are answered. A complete file at submission shortens the second phase most.
What does it cost?+
The FSCA charges a non-refundable application fee per category and an annual levy once licensed, published in its fee schedule. RCC's fee covers the preparation, internal review and submission of the file and the handling of FSCA queries, quoted as a fixed amount after scoping.
Can RCC be our compliance officer after licensing?+
Yes. RCC provides FSCA-approved outsourced compliance officers under section 17 for brokers with more than one Key Individual or any representatives.
Related services
Services that go with this one
- FSP licence applicationsNew licences across all categories, crypto and insurance broker licensing, amendments and upgrades.Explore fsp licence applications
- Key individual servicesKey Individual placement, capacitation and training.Explore key individual services
- RE exam trainingRE1 and RE5 preparation across four dedicated sessions.Explore re exam training
- Compliance monitoringOngoing FAIS, FICA and NCA monitoring, plus outsourced compliance officer services.Explore compliance monitoring
See where your obligations actually stand.
Book a consultation: a structured review of your current obligations, gaps and exposure, with no obligation to proceed.