Most levies payable to the Financial Sector Conduct Authority in the 2026/27 financial year will increase by about 3.2% if proposed amendments to the levy schedules are adopted, while National Treasury has also proposed new levies for several categories of supervised entities.
However, retirement funds face a 15% hike in the levy they must pay to the Office of the Pension Funds Adjudicator (OPFA).
On 8 June 2026, Minister of Finance Enoch Godongwana published proposed amendments to two of the Schedules to the Financial Sector and Deposit Insurance Levies Act. These Schedules contain the formulae for the levies payable to the FSCA and the OPFA.
No increases have been proposed for the Ombud for Financial Services Providers or the Financial Services Tribunal (FST). When they published their respective draft budgets for the 2026/27 financial year, both the FAIS Ombud and the FST indicated they would not ask for a levy increase.
As Treasury’s Notice points out, the increase in the FSCA levy will automatically result in an increase in the levy payable to the Ombud Council. All entities supervised by the FSCA must pay a levy to the Ombud Council. In terms of Schedule 4, the levy is 2.5% of the levy paid to the FSCA.
FSCA levy
The entities supervised by the FSCA include banks, insurers, collective investment scheme managers, financial services providers, co-operative financial institutions, certain market infrastructures (exchanges, central securities depositories, clearing houses, central counterparties, trade repositories), over-the-counter derivative providers, credit rating agencies, retirement funds, and retirement fund administrators.
The levies payable to the FSCA in the 2025/26 financial year were increased by 4.4%, although the Minister of Finance initially gazetted a proposed increase of 5%.
Table B in Schedule 2 sets out the formula for calculating the levy payable to entities supervised by the FSCA. In most cases, the total levy is the sum of a base amount plus a variable amount or two variable amounts.
The proposed 3.2% increase will apply to most entities supervised by the FSCA. Treasury has, however, proposed new levy structures for credit rating agencies, benchmark administrators, and certain external market infrastructures.
The 3.2% increase will have the following impact on financial services providers (FSPs):
Category I and IV FSPs
- The base amount increases from R3 983.90 to R4 111.39.
- The variable amount increases from R575.45 to R593.87.
The variable amount is based on the average total number of key individuals plus the average total number of representatives, calculated from 1 September of the preceding levy year to 31 August of the current levy year.
Category I and IV FSPs that provide only Long-term Insurance Subcategory A products and/or Friendly Society Benefits
- The base amount increases from R3 983.90 to R4 111.39.
- The variable amount remains at R250.
Category II, IIA, and III FSPs
- The base amount increases from R8 299.80 to R8 565.39.
There are two variable amounts for Category II, IIA, and III FSPs: the total rep and KI amount and the total value of investments under management or administration on 31 August of the levy year.
- The amount for each rep and KI will increase from R575.45 to R593.87.
- The percentage used to calculate the levy on investments under management or administration will increase from 0.0020578% to 0.0021236%.
The proposed amendments will also increase by 3.2% the cap on the maximum levy payable by any category of FSP, from R2 776 600 to R2 855 131.
To see the levies for each category of FSCA-supervised entity, download Notice No. 7574 in Government Gazette 54796.
Treasury to introduce levies for these entities
Credit rating agencies will, for the first time, become subject to a dedicated FSCA levy structure.
National Treasury proposes introducing a fixed annual levy of R2 million, whereas no base levy is currently payable. In addition, credit rating agencies will be subject to a variable levy linked to industry revenue.
The variable component will be allocated among registered agencies according to their share of the sector’s total revenue, meaning larger agencies will pay a larger proportion of the levy. Treasury proposes setting the annual variable levy pool at 1.5% of the credit rating agency industry’s total revenue for the previous financial year, with each agency’s contribution determined by its relative share of that revenue.
In contrast, in the case of external credit rating agencies, Treasury proposes introducing a fixed annual levy of R100 000, with no variable amount linked to revenue.
Treasury also proposes introducing levies for:
- External central counterparties: a base levy of R100 000 (no variable amount).
- External trade repositories: a base levy of R25 000 (no variable amount).
- Benchmark administrators: a variable levy equal to 1.5% of revenue, with no base amount.
- Foreign benchmark administrators: a fixed R100 000 levy, with no variable component.
OPFA levy
Retirement funds face a proposed 15% increase in the levy payable to the OPFA.
The formula for calculating the levy also comprises a base amount and a variable amount.
It is proposed to keep the base amount at R0 and to increase the variable amount by 15%, from R10.84 to R12.46 per eligible retirement fund member. These are members and other persons who receive regular payments from a retirement fund as reflected in the fund’s latest annual financial statements submitted to the FSCA on 28 February of the preceding levy year. Beneficiaries and members with unclaimed benefits are excluded.
There is no cap on the levy that can be paid to the OPFA.
The increase is consistent with the OPFA’s funding proposal for the 2026/27 financial year. In its budget submission, the Adjudicator said additional funding is required to support growing operational demands, including increased case volumes, the implementation of new technology and cybersecurity measures, inflationary pressures, and the need to retain and attract skilled staff.
Read: Pensions adjudicator seeks big levy increase in 2026/27
FAIS Ombud levy
No increase has been proposed to the levy payable to the FAIS Ombud. The levy formula therefore remains unchanged.
The formula for calculating the FAIS Ombud levy comprises a base amount and a variable amount. The variable amount is calculated by multiplying the levy per KI and representative by the average total number of KIs plus the average total number of representatives, calculated from 1 September of the preceding levy year to 31 August of the current levy year.
The base amount is R1 100, and the amount per KI and rep is R720.
Tribunal levy
The levy payable to the FST remains unchanged at 2.76% of the levy payable to the FSCA or Prudential Authority, or the combined levy where an entity is supervised by both authorities.
Deadline to comment
The deadline to comment is 8 July 2026. Comments should be submitted to CommentDraftLegislation@treasury.gov.za.
