Authorised financial services providers are required to pay a levy to the Financial Services Board (FSB) to cover the cost of the FSB’s supervision and a levy for funding the Office of the FAIS Ombud.
Risk of non-payment of levies
If the FSP fails to pay the levies imposed, they run the risk of licence suspension and/or licence withdrawal. All FSPs must make payment to the FSB on or before 31 October 2015. It is, therefore, very important that this date is diarised by FSPs to avoid regulatory action.
Ensure the FSB has the correct contact details
The invoice for the levies will be sent to the contact details of the person which the FSB has on record as at the end of September 2015.
These contact details would have been supplied by the FSP to the FSB at application stage (FSP1 Form – Business Information) and should have been updated if there were any changes. It is highly recommended that all FSPs log into their profile on the FSB’s on-line system to ensure that the contact details recorded are up-to-date and correct. Incorrect contact details will mean that the invoice may not be received by the FSP, payment may not be made and the licence may then be at risk of suspension.
Please contact your Masthead Compliance Officer if you need assistance in this regard.
Make provision for payment
Board Notice 101of 2015 sets out the details of the levies which are payable by 31 October 2015.
Planning ahead will help to ensure that you meet the deadline date.
Levy on Category I and IV FSPs:[Base amount of R3,391.00] + [No Key Individuals*/Representatives at 31 August multiplied by R542.00]
Levy on Category I FSPs authorised for Long-Term Insurance Subcategory A only:[Base amount of R3,391.00] + [No Key Individuals*/Representatives at 31 August multiplied by R250.00]
Levy on Category II, IIA and III FSPs:[Base amount of R6,832.00] + [No Key Individuals*/Representatives at 31 August multiplied by R542.00] + [Value of investments managed on behalf of clients on 30 June 2015 X 0.0000175073]
Levy for funding of Office of Ombud for Financial Services Providers (all FSPs):[Base amount of R835] + [No Key Individuals*/Representatives at 31 August multiplied by R318.00]
*Key individuals who are also listed as representatives will only be counted once.