NEW LEVY FOR FINANCIAL SERVICE PROVIDERS

MBABANE – Screws continue to be tightened as financial service providers in capital markets will now be expected to pay a recognition fee of 1.25 per cent of fee income.

Financial service providers in financial markets includes, but are not limited to, a central securities depository, a collective investment scheme, the manager of a collective investment scheme and the representative of an investment adviser.    
This obligation has come about following promulgation of the Imposition of Supervisory Levies on Capital Markets Financial Services Providers Notice 2017 gazzeted on December 1.

In exercise of powers conferred by section 21 of the Financial Services Regulatory Agency (FSRA) Act of 2010 that has been issued by Chief Executive Officer (CEO) Sandile Dlamini announced that the notice requiring payment of the levy was already in force. Dlamini said the levy had been imposed on capital markets financial service providers as defined in section 21 of the FSRA Act.

The CEO said the levy shall be: “a recognition fee of 1.25 per cent of fee income and a recognition fee of 0.025 per cent of all assets under management for all such schemes administered by a manager licenced in terms of section 39 of the Act at any time during the levy year.”

The levy ought to be paid in four quarterly installments. Dlamini explained that the 1.25 of fee income levy was also imposed on securities exchanges, investment advisers and dealers licenced under section 26 of the Act.

In terms of penalties, Dlamini said; “a financial service provider which fails to pay the respective levy as stipulated in this notice shall, in addition to paying the imposed levy, be liable to pay an interest at the rate calculated on the outstanding levy and in the manner determined by this notice.”

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