Levies for Financial Services Providers (FSPs) 2024-2025
The Minister of Finance has gazetted the levies that FSPs must pay to the FSCA for the 2024/25 financial year. You may access the relevant amendments to the schedules as published by accessing the information provided below:
In summary the following is relevant:
- For each Representative and Key Individual (KI) in Category I and IV and Category II, IIA and III will increase from R520 to R551.20
- For each Representative and Key Individual (KI) in Category I and IV FSPs that provide ONLY Long-term Insurance Subcategory A products and/or Friendly Society Benefits, the levy remains unchanged at R250.
The Annual Levy is typically calculated by multiplying the levy by the average number of KI's and average number of Representatives on the FSP register from 1 September to 31 August of the preceding year. By way of example the 2024/2025 levy payable is calculated in terms of the period 1 September 2023 to 31 August 2024
Financial Services Providers (FSPs) which may be authorised for more than one category is required to pay a single levy. This calculation is as follows:
- The highest of the basic amounts that apply to the different categories for which an FSP is authorised,
- The annual levy is typically calculated by multiplying the levy by the average number of KI's and average number of Representatives on the FSP register from 1 September to 31 August of the preceding year - Where Key Individuals (KIs) and Representatives appears on more than one category, they are counted only once in the calculation,
- The total value of investments managed or administered on behalf of clients under the different categories on 31 August of the levy year. Investments under management or administration held in a foreign currency must be included at the exchange rate published in the press at that date (as may be applicable to the FSP),
- The highest maximum amount that may apply to the different categories for which an FSP is authorised.
Other Levies
- Other levies are also added to the total calculation such as the levies for the FAIS Ombud, Financial Services Tribunal (FST), as well as the Ombud Council.
- The FAIS Ombud has not increased its levy for 2024/2025
- The FST Levy is calculated at a rate of 2.5% of the FSCA levy - Table C in schedule 3.
- The Ombud Levy is calculated at a rate of 2.5% of the FSCA levy - Table D in schedule 4.
To avoid confusion relating to the calculation of the Annual Levy payable, an FSP Levy Calculator has been made publicly available. To access the levy calculator, please click on the item below to download and use the calculator:
Please look out for your notification directly from the FSCA to determine the amount and due date of the levy payable. This calculator will assist you in verifying the correctness of the calculation for your Annual Levy payable, alternatively your notification from the FSCA will include the relevant channels available to you, should wish to query the invoiced amount communicated to you.
Our best as always,
The CTB Team
