During December 2022, National Treasury published the new Financial Sector and Deposit Insurance Levies Act 11 of 2022 and the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act 12 of 2022. The effective dates are yet to be determined by the Minister. Once effective, these Acts will replace the existing levies that are payable by financial institutions to the FSCA and Prudential Authority.
The Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums intends to:
- the imposition of financial sector levies on supervised entities;
- the imposition of a deposit insurance levy;
- exemption from such levies under certain circumstances;
- the allocation of amounts levied to financial sector bodies; and
- matters connected therewith.
The Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums intends to:
- provide for the collection and administration of levies imposed in terms of the Financial Sector and Deposit Insurance Levies Act;
- amend the Financial Sector Regulation Act in order to provide for the administration of levies
- provide for the imposition, collection and administration of deposit insurance premiums;
- amend the Pension Funds Act, the Banks Act, the Mutual Banks Act, and the Financial Advisory and Intermediary Services Act, to align them with the Financial Sector Regulation Act, in respect of the financing of financial sector bodies; and
- provide for matters connected therewith.
The schedules to the Financial Sector and Deposit Insurance Levies Act sets out the levy calculations for various supervised entities. It is expected that FSPs will pay higher levies once the Act comes into effect as it imposes new levies to fund the Financial Services Tribunal, the Ombud Council, as well as special levies.