Compli-Serve Guidance on levies imposed on financial institutions for 2019/2020
Compli-Serve SA
The Financial Sector Conduct Authority (FSCA) has finalised the annual levies for Financial Institutions for 2019/2020.
The 2019 FSCA levy invoices will be mailed by 30 September 2019 and will be payable by no later than 31 October 2019.
Please note that all authorised FSP’s, in other words active FSPs on record at the Commissioner’s office as at 31 August 2019, will be legally liable to pay levies.
It is important for you to do the following before 31 August 2019
Update your representative register on the central register.
Inform the FSCA in writing if you have discontinued your business, merged with another company, work for somebody else and stopped doing business and would like to lapse the licence.
1. Summary: Levies on Authorised Financial Services Providers 2019/2020
Should the levy referred to in this paragraph not be paid; the licence of the authorised financial services provider may be withdrawn in terms of section 9 of the Financial Advisory and Intermediary Services Act.
Last year’s comparable figures are in (brackets).
FSCA FAIS Levy
Category I and IV FSPs:
A base amount of R3,575 (R3,373) plus R570 (R538) for each key individual, plus R570 (R538) for each representative, to a maximum of R1,844,143.
Category I FSPs (who renders financial services only in connection with financial products belonging to long-term insurance Category A only/Friendly Societies):
A base amount of R3,575 plus R250 for each key individual, plus R250 for each representative, subject to a maximum of R1,844,143.
Category II, IIA and III FSPs:
Basic levy of R7,203 (R6,795), plus R570 for each key individual and representative (less KIs that are also appointed as representatives), plus 0.0000184595 (0.0000174146) of total value of investments managed, to a maximum of R1,844,143. (Funds under management will be based as at the end of June 2019 for calculation purposes)
Investments held in foreign currency must be included at the exchange rate published in the Press as at 30 June 2019.
FAIS Ombud Levy
A basic levy of R1,105 (R1,023), plus R421 (R390) for each Key Individual, plus R421 for each representative, with a maximum of R299,157.
2. Levy on intermediaries ito s 45 intermediaries as referred to in Short-term Insurance Act
The levy is an amount equal to 0.02179672% (0.02056294%) of the total gross premiums as reported on by an auditor or accounting officer. Subject to a maximum gross premium of R196,543,333 equal to a maximum levy of R42,840.
3. Multiple licence holders
The FSCA has decided to maintain the decision to charge only one levy per legal entity which holds multiple licences, as has been the normal practice.
4. Examples and Calculations
What is your levy amount likely to be this year?
4.1 Example for FSP Levy (Category I only excl. LT A)
Number of authorised persons; total levy (for both FSP and Ombud charge):
- 1 - R5,671
- 2 - R6,662
- 3 - R7,653
- 4 - R8,644
- 5 - R9,635
- 6 - R10,626
- 7 - R11,617
- 8 - R12,608
- 9 - R13,599
- 10 - R14,590
4.2 Example for FSP Levy: (Category II, IIA and III FSP’s only)
Example 1 with AUM of R100,000,000; 5 authorised persons
Total fees – R15,108
Example 2 with AUM of R1 Billion; 5 authorised persons
Total fees – R31,722.50
5. Payment of Levies
Levies must be made payable to the FSCA by means of a cheque, postal order or money order, or a money transfer.
If levies are overdue, interest will be charged at a current rate equal to the prime overdraft rate of Standard Bank prevailing at the time.
All payments must be made on or before the 31 October 2019, but only after having received an invoice from the FSCA.
6. Application for Exemption
Exemption requests can be made in writing to the Executive Officer, Financial Sector Conduct Authority, PO Box 35655, Menlo Park, 0102.
If such a request is made the application must contain full details of the authorised FSP and set out concisely the reasons for any exemption sought.
7. Collective Investment Schemes Levies
7.1 Levy on collective investment schemes in securities
Total amount of R16,633,325 (R15,691,816) for schemes administered by a manager registered in terms of section 42 of CISCA. Amount payable in four quarterly installments on or before 31 July, 30 September, 31 December and 31 March of the levy year. (Apportionment- 10% apportioned equally among all managers; 60% according to number of portfolios administered by each manager; 30% in proportion to the total assets administered by each manager) The quarterly amounts are calculated on the basis of statistics as at the end of the preceding quarter and are apportioned among all managers registered at that date.
7.2 Levy on foreign collective investment schemes
Payable in four quarterly installments on or before 31 July, 30 September, 31 December and 31 March of the levy year. (Amounts calculated on basis of statistics as at the end of the preceding quarter, which statistics must be furnished to the Commissioner within 30 days after the end of such quarter - must also contain details of all sales and redemptions or buy-backs in SA)
- Amount of R11,594 (R10,938), in respect of each scheme.
- Amount of R6,288 (R5,932), in respect of each portfolio, fund or sub-scheme; AND
- 0.00031231% (unchanged) of the net amount of assets managed on behalf of SA investors.
7.3 Levy on foreign collective investment schemes in hedge funds
The levy, in respect of hedge funds schemes declared in terms of section 63 of the Collective Investment Schemes Control Act, is payable in four quarterly installments, with each installment consisting of -
- Amount of R12,402, in respect of each scheme.
- Amount of R1,855, in respect of each portfolio, fund or sub-scheme; AND
- 0,0045% of the net amount of assets managed (unchanged).
The amounts are calculated on the basis of statistics as at the end of the preceding quarter, which statistics must be furnished to the relevant Commissioner within 30 days after the end of such quarter.
Levies are payable in respect of all months falling within any relevant quarter.
7.4 Levy on collective investment schemes in property – refer to the Notice
7.5 Levy on collective investment schemes in participation bonds – refer to the Notice
8. Other fees - levies on financial institutions
Please refer to the Notice regarding the other fees imposed by the FSCA for 2019/2020.
Other fees include;
- Levy on pension funds
- Levy for Pension fund Adjudicator
- Levy on Administrators
- Levy on retirement annuity funds
- Levy on friendly societies
- Special SAM levy on short-term insurers and underwriters at Lloyd’s
- Levy on short-term insurers and Lloyd’s underwriters
- Levy on long-term insurers
- Special SAM levy on long-term insurers
- Levy on collective investment schemes in securities
- Levy on foreign collective investment schemes
- Levy on foreign collective investment schemes in hedge funds
- Levy on collective investment schemes in property
- Levy on collective investment schemes in participation bonds
- Levy on exchanges
- Levy on central securities depositories
- Levy on financial markets in respect of market abuse
- Levy on credit rating agencies