FSCA proposes 5% increase to FSP levies for 2022

The FSCA has published the 2022 draft Notice imposing levies on financial institutions.

The levy increases have been proposed by the FSCA in absence of the finalisation of the Financial Sector and Deposit Insurance Levies Bill, which was circulated by the FSCA for commentary during 2021.

In terms of the proposals in the Bill, FSPs would have been subjected to a more significant increase of costs because of the additional Financial Services Tribunal, Ombud Council and special levies that are proposed.

The increases in the current draft Notice equate to approximately 5% increase from last year, 2021.

Comparison of levies of 2021 versus proposed 2022

Levies on FSPs

FAIS Ombud Levies

These proposals are open for public commentary. The deadline to comment on the proposed increases is 22 July 2022. Comments can be sent to FSCA.RFDStandards@fsca.co.za using the comments template
Masthead will review the proposed increased levies and submit commentary to the regulator by the proposed date.

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1) The total number of key individuals of the FSP approved in terms of FAIS plus the total number of representatives appointed by the FSP, less the key individuals that are also appointed as representatives as at 31 August 2022.
2) The total value of investments managed on behalf of clients in terms of the authorisation as an FSP on 30 June 2022. The investments under management held in foreign currency must be included at the exchange rate published in the Press at that date.