During September 2023, the FSCA published its budget and estimates of expenditure for the 2024/25 financial year including proposed levies that will be imposed and fees that will be charged by the FSCA.
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 2022, Statistics South Africa published a CPI of 6.9%, which suggests that levy variables for 2024/2025 must therefore automatically increase by 6.9%. However, the FSCA proposes to apply an increase of 6% which is in line with its projected expenditure.
Comparison of levies of 2023 versus proposed 2024/25
FSPs are also reminded of the Financial Sector and Deposit Insurance Levies Act 11 of 2022 insofar as it relates to an additional special levy which is payable for a two-year period, which started in 2023.
The special levy is an amount equal to 7.5% of the amount of the financial sector levy. The Special levy is due at the same time as the regular levies, the deadline for which is communicated directly by the FSCA when levy invoices are issued.
FSCA Fees applicable to FSPs
The current FSCA Fee Notice applicable to FSPs was determined in 2018 and fees have not been increased since. The table below sets out the proposed fee increases for FSPs.
The consultation period open to industry, on the FSCA proposals, closed on 2 November 2023. Masthead has reviewed the proposed increases to FSP levies and fees and submitted commentary to the regulator on behalf of its member base. Masthead members can read the latest regulatory submission, Feedback on the FSCA Budget and Estimates of Expenditure, Levies, and Fee Proposals 2024/25 on Masthead Connect.
Click on the links to view the documents:
- Explanation of Budget, Estimates of Expenditure and Levies and Fee Proposals
- Notice Regarding the Publication of Budget and Estimates of Expenditure, and Levies and Fees 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.