The Financial Services Board (FSB) has issued Notice 458 of 2017 on the Levies of Financial Institutions. Authorised financial services providers (FSPs) are required to pay a levy to the FSB to cover the cost of supervision and a levy for funding the Office of the FAIS Ombud by 31 October of the levy year. The Notice sets out the details of the levies which are payable as follows:
Category I or IV
Category I or IV FSPs, excluding any such provider who is also authorised as a Category II, IIA or III provider, must on or before 31 October of the levy year, pay a levy which is subject to a maximum amount of R1 641 281, and is calculated as follows:
(a) a base amount of R3 182; and
(b) A x R508
Where A = the total number of key individuals of the FSP plus the total number of representatives appointed by the FSP, less key individuals that are also appointed as representatives, as at 31 August of the levy year.
Category II, IIA or III
Category II, IIA or III FSPs must on or before 31 October of the levy year pay a levy, which is subject to a maximum of R1 641 281, and is calculated as follows:
(a) a base amount of R6 411; and
(b) A x R508; and
(c) B x 0.0000164289
Where A = the total number of key individuals of the FSP approved by the relevant Registrar plus the total number of representatives appointed by the FSP, less key individuals that are also appointed as representatives, as at 31 August of the levy year; and
Where B = the total value of investments managed on behalf of clients in terms of the authorisation as an FSP on 30 June of the levy year.
The investments under management held in foreign currency must be included at the exchange rate published in the Press at that date.
Category I or Category IV FSPs licenced only for Long-term Insurance subcategory A or Friendly Society Benefits
A Category I or a Category IV FSP to render financial services in respect of only the financial product subcategories Long-term Insurance subcategory A or Friendly Society Benefits, must on or before 31 October of the levy year pay a levy, which is subject to a maximum of R1 641 281, and is calculated as follows:
(a) a base amount of R3 182; and
(b) A x R250
Where A= the total number of key individuals of the FSP approved by the relevant Registrar plus the total number of representatives appointed by the FSP, less key individuals that are also appointed as representatives, as at 31 August of the levy year.
Levy for funding of Office of Ombud for Financial Services Providers
A person who is authorised as a financial services provider must on or before 31 October of the levy year pay a levy, which is subject to a maximum of R256 479, and is calculated as follows:
(a) a base amount of R947; and
(b) A x R360.
Where A = the total number of key individuals of the financial services provider approved by the relevant Registrar plus the total number of representatives appointed by the financial services provider, less key individuals that are also appointed as representatives, as at 31 August of the levy year.
Important
Levies due by FSPs will be calculated based on the information available to the Registrar on 31 August 2017. It is therefore important for FSPs to ensure that their information is correct and should changes need to be made, notify the FSB or make changes on the FAIS ePortal before 31 August 2017.
Should the levy not be paid, the licence of the authorised financial services provider may be withdrawn in terms of section 9 of the Financial Advisory and Intermediary Services Act.
Click here to read the Notice of levies on Financial Institutions.