Subject Title - INSETA

10.4 LEVIES PAYABLE IN TERMS OF THE FAIS ACT10.4.1 Levies to the FSBThe FSB raises levies in terms of the legislation that it oversees. The FAIS Actalso allows the Registrar (FSB) to raise levies in respect of authorised FSPs.The levies are based on a formula that takes into account the number of keyindividuals and representatives of each licence. The formulae differ betweenthe various categories.Let's look at an example of a levy calculation based on the 2010 142structures:levyFor a Category I FSP the calculation uses the base amount of R2 550 PLUS „A‟× R400.„A‟ is the total number of key individuals of the financial services providerapproved by the Registrar plus the total number of representatives appointedby the FSP, less key individuals that are also appointed as representatives, asat 31 August of the levy year. 143If the FSP has three (3) key individuals (who are also reps) and 15representatives, the calculation will be R2 550 PLUS (15 × 400) = R8 550subject to a maximum of R1 110 000.Where there are multiple FSPs in one legal entity, the key individuals andrepresentatives of the different FSPs are regarded as belonging to one FSPand only one levy is paid.An example is a large insurance company that has different subsidiaries eachwith its own FSP licence, but part of the group. The group will pay one levy inrespect of all the representatives and key individuals operating in therespective licences where licences span across one legal entity.The levies are payable by a certain time each year – normally on or before 30October of the levy year. Failure to pay the levies is an offence in terms ofFAIS and the FSP licence may be withdrawn or suspended.142 BN 28 of 2010143 Section 15(2) of BN 74 of 2009204 © INSETA - Section 1 12a