A delve into the FSCA Annual Report

According to some analysis from Moonstone, levies from the financial services sector contributed R837 million (2020: R827m) to the FSCA’s revenue of R927m (R926m) in the year to the end of March 2021, according to the authority’s annual report. The FSCA budgeted for revenue of R960m, but levy increases were some R40m less than the budgeted R902m.

The financial intermediary (35%), pension (29%) and insurance (23%) sectors were the three main contributors to the FSCA’s levy income in the 2020/21 year, broadly in line with the situation in the previous financial year.

Operating costs increased from R892m to R914m. Of this, R488m went to salaries, staff benefits, training and other staff expenses. A further R48m (R51m) was spent on executive management remuneration.

Some of the other expense items in 2020/21 were:

  • general expenses: R82m (R94m);
  • building rentals: R77m (R74m);
  • contribution to the Office of the Pension Funds Adjudicator: R75m (R70m);
  • contribution to the Office of the FAIS Ombud: R57m (R64m).

The contingency reserve is maintained at a maximum of 10% of levy and fee income, which is held to protect the FSCA against the risk of unforeseen events.

The FSCA received R121m (2020: R170m) from fines and penalties, which is payable to National Treasury in terms of the Financial Sector Regulation Act.

It had cash and cash equivalents of R600m, up from R542m.

Of the R48.7m in remuneration paid to 13 executives, R41.5m was in the form of basic salaries, R2.2m in incentives, R5m in leave, and R30 000 was for two long-service awards. Basic executive pay ranged from R1.7m to R3.9m, while the incentives ranged from R104 000 to R298 000.

Full report by Moonstone
Full FSCA Annual Report 2020/21