How to check an advisor is licensed and independent

Most people who hire a financial advisor never actually verify their licence or independence status—they rely on a warm introduction or a polished website. This leaves you vulnerable to unqualified advisors, hidden conflicts, and outright fraud.

Licence and independence are two separate things, and checking both takes less than an hour. You don't need to be a regulator; you just need to know where to look and what questions to ask. The effort pays off because a licensed, truly independent advisor operates under real oversight, whereas an unlicensed one does not.

Search the official register

Start by checking the Financial Sector Conduct Authority (FSCA) register. This is the main regulator for financial advisors in South Africa. Go to the FSCA website and use their online search tool to verify the advisor's name, registration number, and the type of licence they hold. If they claim to give investment advice, they must be registered as a Financial Service Provider (FSP) or Authorized Financial Service Provider (AFSP). If they don't appear in the register, do not proceed.

While you're there, check what category they're licenced in. Some advisors hold a licence only for retirement annuities or life insurance, not general investment advice. If they're advising you on equities or bonds, verify their licence covers that. The register also shows their licence status—if it says "suspended" or "under investigation", walk away.

If the advisor works for a larger firm, search for the firm's registration as well. A firm might be licensed but an individual advisor within it might not be. Ask for the advisor's registration number directly and search it yourself rather than accepting their word.

Ask them directly and request proof

Contact the advisor by phone or email and say: "Please send me your current FSP or AFSP registration number and a copy of your Fit and Proper certificate." A licensed advisor will send this instantly because it's routine. If they hesitate, ask why. If they say "it's on our website" but it's vague or outdated, that's a red flag.

Then ask a critical question: "Are you independent, and how do you prove that?" An independent advisor is not tied to a specific product provider or insurance company. They should use a range of fund managers, insurers, or investment platforms. If they mostly recommend products from one company, they may have a conflict of interest. Ask how they're paid. Independent advisors typically charge a fee based on assets under management or a fixed retainer. If they earn commission from product sales, that's not independence—it's a hidden incentive to push certain products.

Request a signed statement of their independence status and fee structure in writing. This creates a paper trail and shows they're willing to commit to transparency.

Verify through references and regulators

Ask the advisor for references from three clients they've advised for at least three years. Call them. Ask how transparent the advisor has been about fees and risks, whether the advisor has held them to a specific strategy even when markets moved, and whether they would hire that advisor again.

If the advisor refuses references or gives you names that ring hollow, that's telling. Then contact the FSCA complaints line if you suspect any misconduct. You can also check if the advisor is registered with the Professional Provident Society (PPS) or another professional body, which often adds a layer of code-of-conduct oversight.

Finally, ask the advisor if they have professional indemnity insurance. Licensed advisors must hold it, and you want to know the cover is current and adequate.

Once you've done these checks, you'll know whether this person is who they claim to be and whether their incentives are aligned with yours. Strove's verified financial advisors have already passed these checks, so you can shortcut the verification if you'd rather browse advisors who've already proved their credentials.