2019/20 financial sector levies in force

Revised levies for a raft of financial institutions came into effect on 12 July 2019, CompliNEWS contributor Pam Saxby reports. Released in draft form last month for comment, they apply to pension funds, their administrators and adjudicators; retirement annuity funds; friendly societies; short-term insurers and Lloyd’s underwriters; long-term insurers; intermediaries; collective investment schemes in securities, property, participation bonds and hedge funds; foreign collective investment schemes; authorised financial services providers and their ombud; exchanges; central securities depositories; and credit rating agencies. The levy on financial market abuse has also been revised, along with special solvency assessment and management framework levies payable by short- and long-term insurers. Provision is made for exemptions, consolidated payments and arrears.

The increases have generally kept in line with inflation.

In respect of financial services providers;

Category I or IV FSP

(a) A base amount of R3 575; and (2018: R3 373)
(b) KI/Rep x R570 (2018: R538)

Category I or IV FSP (1.1 and/or 1.19 only)

(a) A base amount of R3 575; and (2018: R3 373)
(b) KI/Rep x R250 (2018: R250)

Category II, IIA or III FSP

(a) A base amount of R7 203; and (2018: R6 795)
(b) KI/Rep x R570; and (2018: R538)
(c) AUM x 0.0000184595 (2018: 0.0000174146)

Ombud Levy

(a) A base amount of R1 105; and (2018: R1 023)
(b) KI/Rep x R421 (2018: R390)