The Financial Sector and Deposit Insurance Levies Act, 2022 (Levies Act) commenced on 1 April 2023. The Levies Act prescribes the financial sector levies on supervised entities for the funding of the FAIS Ombud and sets out the fees payable by FSPs.
On 4 September 2024, the Office of the FAIS Ombuds office published the Budget and Levies Proposal for the 2025/26 financial year.
Fees payable by FSPs comprise of a base plus a variable amount. The average number of Key Individuals (KIs) and average number of Representatives (Reps) on the FSP register from 1 September to 31 August of the previous year are normally multiplied to get the Annual Levy payable.
The FAIS Office proposed that for the 2025/26 period, the base amount of R1 100 remains unchanged. However, the variable amount which consists of a levy amount for KIs, and Reps be increased by 4.6%, in line with July 2024 CPI index.
The maximum amount payable by an FSP also remains unchanged at R333 275. The Special Levy which was payable for the 2023/24 and 2024/25 period has come to an end.
In addition to the levy proposal, the FAIS Office’s Budget and Expenditure breakdown was also provided for comment and feedback. Submissions on the proposals can be made in writing, on or before 16 October 2024, using the available template. Submissions can be sent to the FAIS Ombud at comments@faisombud.co.za.