FSP Levies 2023

It’s almost that time of the year again… FSP levies, which are due at the end of October.
The Financial Sector and Deposit Insurance Levies Act 11 of 2022 (the Act) that commenced earlier this year on 1 April 2023 introduces some changes to levy payments going forward.

The Act prescribes two main levies for FSPs, these are the Financial Sector Levy and a Special Levy.
The financial sector levy is made up of:

• FSCA levy
• Statutory Ombud Schemes
• Tribunal levy
• Ombud Council levy

The Special Levy is an amount equal to 7.5% of the amount of the financial sector levy, and only applies for two years from the date of commencement, i.e. 1 April 2023, to each entity to which an FSP pays a financial sector levy.

The Tables below set out the various levies which must be paid by the different categories of FSPs according to the Schedules of the Act.

Financial Sector Levy

FSCA Levy

Statutory Ombud Schemes (FAIS Ombud Levies)

Tribunal Levy (*New)

Ombud Council Levy (*New)

Special Levy

Important

The deadline for the payment of levies is 31 October 2023. This includes the payment of the Special levy. The FSCA will send an invoice which will set out the special levy and the financial sector levy amounts due by your FSP. Both levies must be paid together.

Proof of payment must be sent via email to FSCA.levies@FSCA.co.za with the subject line stating the FSP number.

Those FSPs that require an exemption from paying levies can submit an application to FSCA.leviesexemption@FSCA.co.za with motivation for the request and supporting documents.

FSPs are reminded to check that the FSCA has their correct contact details, to ensure that the invoice reaches the FSP and can be paid before the deadline date. If an FSP does not receive their invoice ahead of the deadline date, we suggest that you contact the FSCA to request that this be re-sent to you. Should the levy not be paid, the licence of the FSP may be withdrawn in terms of section 9 of the FAIS Act.

2022 vs 2023

Below we have set out a few examples of comparison levy calculations between 2022 and 2023 for various types of FSPs.

Example 1: Sole proprietor Category I or IV FSP with no key individual/representative

Example 2: Sole proprietor Category I or IV FSP with one representative

Example 3: CAT II, IIA, III FSP with one key individual and two representatives

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1)The average total number of key individuals plus 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 a financial services provider 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.