Johan Wiese replaces Richard as director of IG South Africa
IG Group, Europe’s largest online trading platform, has relocated its Finance Chief Operating Officer (COO) Johan Wiese to join its South Africa business as a director.
The move is apparently part of a series of changes to IG Markets South Africa’s (IGMSA) management structure as he takes over from its current director Richard Heading, a filing with the UK Companies House shows.
Wiese has been with IG Group since 2009, having held many finance roles during his 14-year stint. His promotion comes at a time when IG aims to expand its regulatory footprint in South Africa.
IG Markets South Africa Limited is part of Europe’s largest Online Trading provider, IG Group. While the company is authorised by the FSCA (FSP. No 41393) to provide execution only services, IG South Africa’s CFDs products are not regulated as they are undertaken on a principal-to-principal basis. Instead, CFDs issued by IG Markets South Africa are regulated by the Financial Markets Act.
According to the FSCA, IG Markets has applied in June 2019 to expand the scope of its authorisation and in order to operate as an OTC derivative provider (ODP). However, the application was dismissed by the nation’s watchdog. The regulator’s disapproval has promoted IG’s South African branch to appeal the decision before the Tribunal.
For existing clients, the South Africa-based broker was permitted to offer them CFDs and similar products, but they should be informed about rendering the service under this exemption.
Additionally, IG Markets is obliged to provide the authority with a list of its existing clients and disclose certain operational metrics such as their trading exposure and the levels of capital it reserves to offset relevant risks.
Forex brokers in South Africa are overseen by the financial sector conduct authority, which approves the firms that can operate within the jurisdiction. The FSCA handles the issuance of licenses and can sanction companies that violate guidelines of the nation’s dual regulation system.
South Africa enjoys a strong and well-organized financial market and therefore has become a popular destination for brokers looking to expand. It is one of the world’s top ten capital markets and boasts thousands of investors. The country itself is a diverse market that is largely devoid of the market saturation seen in other jurisdictions such as Europe.