Investors following the copy trading sector learned on 18 June 2026 that the Pelican copy trading licence in South Africa had been granted, making the company what it describes as the first regulated copy trading provider in the country. The Financial Sector Conduct Authority (FSCA) issued the authorisation under FSP No. 55408 to London & Eastern LLP, the regulated legal entity through which Pelican delivers its copy trading services.
The FSCA’s FAIS register, as searched on 28 August 2026, shows the authorisation date as 18 June 2026, adding precision to the company’s announcement, which referred only to June 2026. The licence covers portfolio management and investment advice, the same categories under which Pelican operates in the UK and Europe.
Why Regulators Treat Copy Trading Differently From Plain Software
Copy trading sits in a legally awkward position. When a platform merely provides a tool for a user to choose and manually replicate another trader’s positions, it can be classed as software. But when the platform automatically executes trades across client accounts based on a signal from another trader, it starts to look a great deal more like portfolio management.
The Financial Conduct Authority (FCA) addresses this directly in its FCA copy trading guidance, indicating that platforms offering copy trading may require portfolio management authorisation and that such services can constitute investment advice to investors. That is precisely why Pelican operates through a regulated entity rather than as a straightforward technology vendor.
In the UK, that entity is London & Eastern LLP, which holds FCA Firm Reference Number 534484 and was authorised on 23 February 2011. The firm also operates under the trading name Pelican Asset Manager. Pelican Exchange Limited, the operational company, is an Appointed Representative of London & Eastern LLP, holding FCA Reference Number 739090 and registered in England and Wales under company number 09437275.
The UK Financial Ombudsman Service has a decision on record (reference DRN-4716691) involving London & Eastern LLP trading as Pelican Trading, relating to its copy trading app service. That case illustrates the kind of regulatory scrutiny that comes with operating under an authorised framework, rather than outside one.
What the Pelican Copy Trading Licence Means for South African Brokers
South Africa already has a well-developed retail FX and CFD broker market. Adding copy trading to a product range is commercially appealing for those brokers, but it brings a permissions question with it: if the copy trading system automatically places trades across client accounts, who is accountable for the investment decisions those trades represent?
Mike Read, co-founder of Pelican, put it directly in a comment to Finance Magnates: ‘When technology is facilitating investment decisions across client accounts, appropriate regulatory oversight should be fundamental, not optional.’ He added: ‘For a South African regulated broker looking to offer copy trading through a regulated specialist technology provider, Pelican is now the only option.’
Pelican offers white-label copy trading infrastructure to brokers, covering mobile, desktop and API-based access. Its platform integrates with MetaTrader 4, MetaTrader 5 and cTrader. The FSCA FAIS register confirms the authorisation status as ‘Authorized’ under FSP No. 55408, matching the company’s announcement.
For a South African broker evaluating copy trading products, the arrival of a locally licensed provider changes the risk calculus. Working with a provider that holds FSCA authorisation means the regulatory layer sits with the copy trading specialist, not solely with the broker. That can simplify compliance conversations internally and with the regulator.
Pelican told Finance Magnates the South African licence is one step in a broader campaign to add regulatory permissions across multiple territories. The company has not yet disclosed which South African brokers it is onboarding first, or which platforms the new licence will support in-market.
You can review London & Eastern LLP’s regulatory record, including its FCA authorisation details, through publicly available regulatory information. The next test for Pelican will be whether any competing provider seeks equivalent FSCA authorisation, and whether the brokers it is courting move quickly or treat the regulated structure as a nice-to-have rather than a requirement.
