Subject Title - INSETA

The key individual must ensure that there are adequate systems andprocedures in place to account for the number of key individuals andrepresentatives in the FSP to pay both the FSB and the Ombud for FinancialServices Providers (FAIS Ombud) levies.10.4.2 Levies to the Ombud for Financial Services Providers (FAIS Ombud)Authorised FSPs, regardless of product categories, which they are licensedfor, pay annual levies to the Ombud for Financial Services Providers (FAISOmbud), calculated as follows – using the 2009 levy structures:The base amount of R581 PLUS „A‟ × R218.„A‟ is the total number of key individuals of the financial services providerapproved by the Registrar, plus the total number of representativesappointed by the FSP, less key individuals who are also appointed asrepresentatives, as at 31 August of the levy year. 144Using the same example as above, if the FSP has three (3) key individuals(who are also Reps) and 15 representatives, the calculation will be:R581 PLUS (15 × R218) =R3 851 subject to a maximum of R158 270.As with the FSB levies, where there are multiple FSPs in one legal entity, thekey individuals and representatives of the different FSPs are regarded asbelonging to one FSP and only one levy is paid – same as discussed above.10.5 INTERRELATIONSHIPS BETWEEN FSPs AND CO-RESPONSIBILITIESIn terms of Section 7(3) of the FAIS Act, FSPs are only allowed to conductFAIS-related business with other authorised FSPs. Similarly, FSPs may onlyprovide financial services in respect of products of product suppliers thathave been authorised under applicable legislation.The key individual must ensure that the FSP has procedures to ensure that, ifthe provider does any financial services-related business with any other FSP,such other provider is properly authorised.144 Section 16(2) of BN 74 of 2009© INSETA - Section 1 12a 205