Annual Services Board levies are now due

It's that time of the year again: the Annual Financial Services Board and FAIS Ombud levies for the period 01.09.2014 – 31.08.2015 are due by 31 October 2015. 

In accordance with our mandatory agreement with our FSP Dealer Members, IDA Risk Management will have a special debit order run to collect each Dealer’s pro-rata levy amount payable by each individual member during September 2015. Further communication in this regard will follow shortly.

Why are these levies payable?
In terms of section 16(1)(b) of the Financial Services Board Act, 1990, the operational costs of the Board are funded by levies and fees. Levies form by far, the largest part of this funding. The Board does not receive any funding from the fiscus and in this way, is self-funding. Levies are raised against regulated entities in terms of section 15A of the Financial Services Board Act. 

In accordance with long established FSB policy, cross-subsidisation of expenditure by the different Divisions within the FSB, does not take place, for obvious reasons. In this way the FSB operates within its own cost centres and each sub-sector e.g. FAIS, is funded by the entities falling within that sub-sector. 

As a FAIS-authorised FSP, IDA Risk Management is therefore obligated to pay an annual levy by the end of October 2015 and this cost is recouped from IDA Risk Management as per our mandatory agreements. 

FAIS Ombud levies
Section 22 of the FAIS Act determines that the Office of the FAIS Ombud must be funded by the FSB. 

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