The FSCA recently published its budget and estimates of expenditure for the 2025/26 financial year including proposed levies that will be imposed.
Levies on FSPs
The FSCA’s notice explains that section 10(4)(b) of the Levies Act provides that the levies must be increased by the arithmetic mean of the Consumer Price Index (CPI) as published by Statistics South Africa in the preceding calendar year.
In December 2023, Statistics South Africa published a CPI of 6.0%, which suggests that levy variables for 2025/2026 must therefore automatically increase by 6.0%. However, the FSCA proposes to apply a 5% increase in line with its projected expenditure.
Comparison of levies of 2024 versus proposed 2025/26
These proposals are open for public commentary. The deadline to comment on the proposed increase to levies is 10 December 2024. Comments must be sent to FSCA.RFDStandards@fsca.co.za using the comments template.
Click here to read the FSCA’s Explanation of Budget, Estimates of Expenditure and Levies and Fee Proposals.
(1) Average total number of key individuals plus the average total number of representatives, calculated over the period 1 September of the preceding levy year to 31 August of the levy year.
(2) The total value of investments managed or administered on behalf of clients in terms of the authorisation as an FSP on 31 August of the levy year: Provided that investments under management or administration held in foreign currency must be included at the exchange rate published in the press at that date.