Government Gazette

Vol. 407, No. 20021, 7 May 1999

GENERAL NOTICE

Notice 47 of 1999

BOARD NOTICE

FINANCIAL SERVICES BOARD

FINANCIAL SERVICES BOARD ACT, 1990
LEVIES ON FINANCIAL INSTITUTIONS

The Financial Services Board referred to in section 2 of the Financial Services Board Act, 1990 (Act No. 97 of 1990), hereby under section 15A of the said Act imposes the levies set out in the Schedule on financial institutions.

By order of the Financial Services Board.

W J HASLAM
Deputy Chairman: Financial Services Board

SCHEDULE

Definitions

  1. In this Notice any word or expression to which a meaning has been assigned in any financial services law, has the meaning so assigned to it and, unless the context indicates otherwise -
  1. "Board" means the Financial Services Board referred to in the Act; (iv)
  2. "financial services law" means the Act, and any other act referred to in paragraph (a) of the definition of "financial institution" in section 1 of the Act; (v)
  3. "levy year" means the period from 1 April 1999 to 31 March 2000 and, subject to this Notice and any amendment or repeal thereof, such corresponding period in succeeding years, in respect of which levies are imposed; (iii)
  4. "relevant Registrar" means the Registrar mentioned in a financial services law concerned; (i)
  5. "the Act" means the Financial Services Board Act, 1990 (Act No. 97 of 1990). (ii)

Imposition of levies

  1. The levy specified in an item of this Notice is hereby imposed in respect of the financial institution referred to in that item and in respect of the levy year.

Levy on pension funds

  1. (1) In respect of a pension fund registered or provisionally registered in terms of the Pension Funds Act, 1956 (Act No.24 of 1956), excluding a retirement annuity fund as defined in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962), the levy is an amount of R262 plus R2,17 per member of such fund and R2,17 in respect of every other person who receives regular periodic payments from such fund (excluding a member or person who receives policy benefits under a contract which relates exclusively to such particular member or person and is issued by a long-term insurer registered or deemed to be registered in terms of the Long-term Insurance Act, 1998 (Act No. 52 of 1998)), or R217 262, which total amount is the lesser. A pension fund registered under an umbrella scheme must pay an additional levy of R68 in respect of each registered participating employer for which a set of special rules exists. The maximum levy applies in respect of every participating employer and not in respect of the umbrella scheme as such.

(2) In the case of a pension fund that is not exempted in terms of section 2(3)(a) of the Pension Funds Act, 1956, read with regulation 1 of the regulations published by Government Notice No R.98 of 26 January 1962, the calculation of the levy referred to in subitem (1) is based on the number of members and other persons referred to in that subitem, as that number is reflected in the latest statistics furnished to the relevant Registrar in terms of any law, and on file with the Board on 31 August 1999. If a transfer of members is in process and not finalised on 31 August 1999, the transferor must pay the levy in respect of the members to be transferred.

(3) In the case of a pension fund that is exempted in terms of section 2(3)(a)of the Pension Fund Act, 1956, read with regulation 1 of the regulations published by Government Notice No. R.98 of 26 January 1962, the calculation of the levy referred to in subitem (1) is based on the number of members and other persons referred to in that subitem, on 31 December 1998, as that number is reflected in the latest statistics furnished to the relevant Registrar by 30 June 1999 in terms of any law. If a transfer of members is in process and not finalised on 31 August 1999, the transferor must pay the levy in respect of the members to be transferred.

(4) The levies referred to in subitem (1), which are payable by a pension fund referred to in -

  1. subitem (2), must be paid not later than 31 October 1999;
  2. and subitem (3), must be paid partially not later than 30 June 1999 and the balance not later then 31 October 1999.

Levy for Pension Funds Adjudicator

  1. In respect of a pension fund registered or provisionally registered in terms of the Pension Funds Act, 1956, including a retirement annuity fund as defined in section 1 of the Income Tax Act, 1962, the levy for the Pension Funds Adjudicator is an amount of 30c per member of such fund and any other person who receives regular periodic payments from such fund. This levy may be paid with the levy referred to in item 3(1), where applicable, and is payable on the date specified in item 3(4).

Levy on retirement annuity funds

  1. (1) In respect of a retirement annuity fund referred to in item 3(1), the levy is an amount of R262 plus an additional amount equal to 0,005 % of the value of the assets of the fund. The value of the assets of a retirement annuity fund is for the purposes of this subitem

  1. in the case of a fund not exempted in terms of section 2(3)(a) of the Pension Funds Act, 1956, read with regulation 1 of the regulations published by Government Notice No. R.98 of 26 January 1962, the value of those assets as reflected in the valuation thereof in the 1998 statistics furnished to the relevant Registrar in terms of or by virtue of any law; and
  2. in the case of a fund exempted in terms of section 2(3)(a) of the Pension Funds Act, 1956, read with regulation 1 of the regulations published by Government Notice No. R.98 of January 1962, the value of those assets as reflected in the valuation thereof in the statistics for the financial period ending during 1998, which are to be submitted to the relevant Registrar by 30 June 1999 in terms of any law.

(2) The calculation of the value of the assets of a retirement annuity fund must include the value of a contract, if any, in which a long-term insurer, in return for the payment of a premium, undertakes to provide policy benefits for the purpose of funding in whole or in part the liability of a retirement annuity fund to provide benefits to its members in terms of its rules.

(3) The levy referred to in subitem (1), must be paid not later then 31 October 1999.

Levy on friendly societies

  1. (1) In respect of a friendly society registered or provisionally registered in terms of section 3(2)(a) of the Friendly Societies Act, 1956 (Act No. 25 of 1956), the levy is an amount of R85 plus 75c per member of such society (excluding a person who receives policy benefits under a contract which relates exclusively to such particular person and issued by a long-term insurer registered or deemed to be registered in terms of the Long-term Insurance Act, 1998), or R1 800, which total amount is the lesser.

(2) The calculation of the levy referred to in subitem (1) is based on the number of members who contribute to the society, as that number is reflected in the latest available statistics on file with the Board on 31 August 1999 and furnished to the relevant Registrar in terms of any law.

(3) The levy referred to in subitem (1), must be paid not later than 31 October 1999.

Levy on short-term insurers and underwriters at Lloyd's

  1. (1) In respect of an insurer registered or deemed to be registered in terms of the Short- term Insurance Act, 1998 (Act No. 53 of 1998), to carry on short-term insurance business, the levy shall be based on estimated gross premium income, adjusted after the end of its financial year in accordance with its actual audited gross premium income. The levy shall be an amount equal to 0,0725% of the first R60 million gross premium income plus 0,0168% thereafter, or R7 250, whichever total amount is the greater.

(2) In respect of a person appointed in terms of section 57(1) of the Short-term Insurance Act, 1998, the levy shall be based on estimated gross premium income for the calendar year ending on 31 December of the levy year, but adjusted annually after 31 December in accordance with the gross premium income which was received on behalf of underwriters at Lloyd's in the Republic for the previous calendar year as published in the Annual Report of the Registrar of Insurance or the Registrar of Short-Term Insurance, whichever is applicable . The levy shall be an amount equal to 0,0725% of the first R60 million gross premium income plus 0,0168% thereafter, or R7 250, whichever total amount is the greater.

(3) The levy based on estimated premium income shall be paid in four instalments before or on 28 May, 31 July, 31 October and 31 January of the levy year. Payments shall be based on estimated gross premium income for the insurer's financial year ending after 1 April of the levy year. The adjustments referred to in subitems (1 ) and (2) shall be combined with the third payment after the end of the insurer's financial year. In the case of Lloyd's it shall be combined with the October payment.

Levy on long-term insurers

  1. (1 ) In respect of a long-term insurer which is registered or deemed to be registered in terms of the Long-term Insurance Act, 1998, and authorised to -
  1. enter into one or more than one disability policy, fund policy, health policy, life policy or sinking fund policy or one or more of those policies and an assistance policy, the levy is an amount of R28 500 plus 0,005% of the liabilities under unmatured long-term policies; or
  2. enter into an assistance policy only, the levy is an amount of R2 850 plus 0,005% of the liabilities under unmatured long-term policies.

(2) For the purposes of this item the expression "liabilities under unmatured long-term policies" means the liabilities as determined at the end of the long-term insurer's financial year which ended in the calendar year preceding the levy year, and the value of such liabilities are the net liabilities under unmatured policies reflected against item 2 in column 6 of Statement O of Form F247, but excludes the liabilities under a contract, in terms of which the long-term insurer, in return for the payment of a premium, undertakes to provide policy benefits for the purpose of funding in whole or in part the liability of a friendly society, as defined in section 1 of the Friendly Societies Act, 1956, or a pension fund organisation, as defined in section 1 of the Pension Funds Act, 1956, to provide benefits to its members in terms of its rules: Provided that such excluded liabilities do not include liabilities under a contract relating exclusively to a particular member of a friendly society, or a pension fund organization or to the surviving spouse, children, dependants or nominees of a particular member of such friendly society or pension fund organization.

(3) A long-term insurer which is registered or deemed to be registered in terms of the Long-term Insurance Act, 1998 -

  1. on 1 April of the levy year, must pay the full levies referred to in subitems (1)(a) and (b) and may pay those levies in two instalments, namely
  1. 50% of the levy or, if the actual amount is not available, a reasonable estimate of such levy based on a reasonable estimate of the value of the liabilities mentioned in subitem (2), before or on 28 May; and
  2. the balance before or on 26 November, of the levy year; or
  1. after 1 April but not after 1 October of the levy year, must pay half of the levies referred to in subitems (1)(a) and (b) in one amount as the only payment, before or on 26 November of the levy year.

Levy on intermediaries

[8] 9. (1) In respect of an agent, broker or other person referred to in section 45 of the Short- term Insurance Act, 1998 (Act No. 53 of 1998), the levy shall be an amount equal to 0,0181% of the total gross premiums as reported on by an auditor or accounting officer, as the case may be, in terms of Regulation 4.4 under the said Act, which was received by such agent, broker or other person during his most recent financial year on behalf of registered insurers, and underwriters at Lloyd's, or R70, whichever total amount is the greater.

(2) The levy referred to in subitem (1), shall be paid not later than 30 September of the levy year and shall be based on the total gross premium on 31 July of each levy year as provided by the South African Insurance Association.

Levy on unit trust schemes in securities other than property shares

10. In respect of unit trust schemes in securities other than property shares, as referred to in the Unit Trusts Control Act, 1981 (Act No. 54 of 1981), the levy is a total amount of R2 884 200 for all such schemes registered in terms of section 4 of the said Act at any time during the levy year, payable in four quarterly instalments on or before 30 June, 30 September, 31 December and 31 March of the levy year. The quarterly amounts are paid on the basis of statistics as at the end of the preceding quarter and are apportioned amongst all unit trust management companies registered at that date. The calculation of levies due is as follows: 10% apportioned equally between all management companies; 60% apportioned according to the number of unit portfolios administered by each management company; and 30% apportioned in proportion to the total assets under management by each management company.

Levy on foreign collective investment schemes

  1. (1) In respect of foreign collective investment schemes approved in terms of section 37A of the Unit Trusts Control Act, 1981, the levy is paid in four quarterly instalments, each instalment consisting of -
  1. a nominal amount in respect of each scheme; plus
  2. a nominal amount in respect of each portfolio, fund or sub-scheme; plus
  3. an amount calculated at a percentage rate of the nett amount of assets managed on behalf of South African investors,

which amounts [shall be determined] are calculated in accordance with those applicable to unit trust schemes in securities other than property shares, registered in terms of the Unit Trusts Control Act, 1981: Provided that if an approved foreign collective investment scheme is not an associate member of The Association of Unit Trusts of South Africa, the amount payable in terms of [subitem (2)] paragraph (b) [shall be] is doubled.

[4] (2) The levy [shall be] is calculated on 30 June, 30 September, 31 December and 31 March of the levy year on the basis of statistics as at the end of the preceding quarter, furnished to the Registrar within 30 days after the end of such quarter and [shall be] is payable in arrear within 60 days after the end of each quarter.

[5] (3) For the purposes of [item 4] subitem (2) the statistics to be furnished to the relevant Registrar [shall] must contain details of all sales and redemptions or buy-backs in South Africa.

[6] (4) Levies [shall be] are payable in respect of all months falling within in any relevant quarter.

Levy on unit trust schemes in property shares

[10] 12. In respect of a management company of a unit trust scheme in property shares, as referred to in the Unit Trusts Control Act, 1981, [(Act No. 54 of 1981)] the levy [shall be] is an amount of R29 526 on every unit portfolio of such scheme, payable by such management company not later than 28 May of the levy year.

Levy on participation bond schemes

[11] 13. (1) In respect of a manager of a participation bond scheme exempted in terms of section 37 of the Unit Trusts Control Act, 1981, [(Act No. 54 of 1981)], the levy [shall be] is an amount of R2 943 plus an amount calculated by multiplying the aggregate amount owing by mortgagors on 31 December of the year preceding the levy year, by the figure of 0,00677%.

(2) The levy referred to in subitem (1), [shall] must be paid not later than 28 May of the levy year.

Levy on stock exchanges
[12] 14. (1) In respect of a stock exchange licensed in terms of the Stock Exchanges Control Act, 1985 (Act No. 1 of 1985), the levy [shall be] is an amount of R1 711 229.

(2) The levy referred to in subitem (1), [shall] must be paid not later than 28 May of the levy year.

Levy on financial exchanges

[13] 15. (1) In respect of -
  1. the South African Futures Exchange, licensed in terms of the Financial Markets Control Act, 1989 (Act No. 55 of 1989), the levy [shall be] is an amount of R946 316; and
  2. the Bond Exchange of South Africa, [also so] licensed likewise, the levy [shall be] is an amount of R899 169

(2) The levies referred to in paragraphs (a) and (b) [respectively, of subitem (1), shall] must be paid by the exchange concerned not later than 15 May of the levy year.

Levy on investment managers

[14] 16. (1) A person, or a person who falls within a category of persons (hereinafter referred to as an investment manager), who has been approved in terms of section 4 of the Stock Exchanges Control Act, 1985, or section 5 of the Financial Markets Control Act, 1989, on or before 31 December of the year preceding the levy year, [shall] must pay on or before 28 May of the levy year, a levy calculated as follows:
  1. a base amount of R2 280; and
  2. A X 0.00000912
    where A = the total value of investments managed as contemplated in section 4 of the Stock Exchanges Control Act, 1985, or section 5 of the Financial Markets Control Act, 1989, as the case may be, on 31 December of the year preceding the levy year subject to a maximum of R20 billion: Provided that investments under management held in a foreign currency, [shall] must be included at the exchange rate published in the Press as at that date.

(2) An investment manager approved between 1 January of the year preceding the levy year and 30 June of the levy year (both days included), [shall] must pay on or before 31 October of the levy year, a levy calculated as follows:

  1. a base amount of 0,5 X R2 280; and
  2. 0,5 X [A X 0,00000912]
    where A = the total value of investments managed as contemplated in section 4 of the Stock Exchanges Control Act, 1985, or section 5 of the Financial Markets Control Act, 1989, as the case may be, on 30 June of the levy year, subject to a maximum of R10 billion: Provided that investments under management held in a foreign currency, [shall] must be included at the exchange rate published in the Press as at that date.

Levy on central securities depositories

[15] 17. (1) In respect of a central securities depository registered in terms of section 9 of the [Safe Deposit] Custody and Administration of Securities Act, 1992 (Act No. 85 of 1992), the levy [shall be] is an amount of R199 694.

(2) The levy referred to in subitem (1) [shall] must be paid not later than 28 May of the levy year.

GENERAL

Payment of levies

[16] 18. (1) The levies and interest (if any) referred to in this Notice [shall, subject to the provisions of this Notice, be] are payable by [a] the financial institution concerned to the Board by means of a cheque, postal order or money order, or a money transfer.

(2) On amounts of overdue levies, interest [will be] is charged at a rate equal to the prevailing prime overdraft rate of the Standard Bank of South Africa Ltd.

(3) The levies referred to in this [Schedule] Notice are inclusive of VAT.

Applications for exemption

[17] 19. (1) An application by [any] a financial institution for the granting under section 15A (4) of the Act of exemption from a provision of this Notice [shall] must be submitted in writing to the Executive Officer, Financial Services Board, P O Box 35655, Menlo Park, 0102, on a date at least one month before the date on which the exemption is in accordance with the application to take effect.

(2) Such application [shall] must contain full particulars of the financial institution, the authorisation of the persons signing the application and the date on which the exemption is to take effect, if granted, and [shall] must set out fully the reasons for the application.

(3) The application [shall] must-

  1. contain an [affirmation] undertaking by the financial institution concerned to provide, on receipt of any such request, the Executive Officer of the Board forthwith with any other or further information or particulars which the Board may require in connection with the institution or application concerned; and
  2. contain particulars of the address at which the institution will accept service by the Board of any notice contemplated in section 15A (4) (b) (ii) of the Act.

(4) A notice referred to in section 15A (4) (b) (ii) of the Act [shall] must on the authority of the Board be served by the Executive Officer by registered post at the address furnished by the financial institution in accordance with subitem (3) (b) [in its application for exemption].

Consolidated payments

[18] 20. Where in any particular levy year a body regarded by the Board as fully representative of a category of financial institutions, offers to make a consolidated payment of levies on behalf of [the relevant financial institution] that category in terms of an agreement concluded between such institutions and the body, the Board may accept such offer if the payment is made in accordance with the provisions of this Notice: Provided that if for any reason such consolidated payment is not so made on the [relevant] prescribed dates of payment, every individual financial institution concerned [shall remain] remains fully responsible for the [individual payment] levy payable by it, plus interest (if any) on that amount calculated in accordance with item [16] 18 (2).

Withdrawal of notices and saving

[19] 21. (1) Board Notices [32 of 7 April 1997] 66 of 22 April 1998 and [111 of 28 November 1997] 114 of 17 July 1998 are hereby, subject to subitem (2), withdrawn.

(2) If on the date of [coming into operation] the commencement of this Notice a financial institution has not yet fully paid a levy and interest due thereon, as imposed in terms of a provision of a notice mentioned in subitem (1), any such provision, together with any other provision of a notice mentioned in that subitem which relates to the first-mentioned provision, [shall be] is deemed in respect of the institution concerned and the [relevant due] amount due not to be withdrawn by subitem (1) until such debt is fully [discharged] paid.