From CompliNEWS | Financial Service Intelligence Watch
FSCA Levy Assessment for 2023/2024: Urgent Compliance needed by 20 September for Category II/IIA Financial Institutions
Financial institutions are being alerted to an impending regulatory requirement. The Financial Sector Conduct Authority (FSCA) Levy for the fiscal year 2023/2024 is on the horizon, and compliance is not just necessary—it’s mandatory.
The FSCA, established under the Financial Sector Regulation Act 9 of 2017 (FSR Act), is a cornerstone of the financial sector’s regulatory framework. Its mission is to ensure that the financial sector operates with transparency and integrity. To fund its operations and initiatives, the FSCA is authorised by the Financial Sector and Deposit Insurance Levies Act 11 of 2022 (Levies Act), to impose levies on financial institutions.
The specific levy amounts payable by financial institutions are detailed in Schedule 2 of the Levies Act. It’s crucial for institutions, especially those under Category II (discretionary) and Category IIA (hedge funds managers), to be aware of the calculations. These are based on factors such as the total value of investments under their management or administration.
To ensure accurate assessments, the FSCA mandates all financial service providers (FSPs) to submit a return indicating the total market value of investments under their management and/or administration as of 31 August 2023. Any investments held in foreign currencies must be converted using the exchange rate as of that date.
The FSCA has made the submission process more efficient through its FAIS e-portal facility. Financial institutions can submit the required information via the portal from 1–20 September 2023.
For those FSPs in the specified categories, it’s mandatory to submit values for investments under management/administration. If an FSP has no such investments, a declaration confirming this fact must be submitted through the portal.
For any challenges with the FAIS e-portal or if login credentials are needed, Mr Akashen Rampersadh from the FSCA is available for assistance. Moreover, for concerns about submission confirmations or the accuracy of submitted data, institutions can directly contact the FSCA.
A call for compliance
Adherence to the FSCA’s requirements, as stipulated in section 241(1) of the FSR Act, is non-negotiable. Non-compliance could lead to severe repercussions. It’s not just about adhering to regulations; it’s about ensuring the financial sector’s integrity and the protection of its customers.