The FSCA ended its 2022 financial year with a deficit of more than R4.9 million, after recording a surplus of over more than R30m in 2021, its latest annual report shows.
The Authority budgeted for revenue of R1.019 billion, but its total revenue was some R69m below target, at R949m (2021: R927m).
Most of the FSCA’s revenue comes from levies, of which the FSCA collected R877m, almost 5% more than the R837m it collected in 2021.
Levies, along with penalties and other income, comprise the FSCA’s revenue from non-exchange transactions, which came to more than R884.6m, 2.6% higher than the R862.2m in 2021.
The Authority’s other sources of revenue are fees, service charges, interest, dividends and other recoveries (all categorised as revenue from exchange transactions). This came to more than R64.6m in the 2022 financial year, only 0.4% higher than the R64.3m in the previous year.
Expenses for the year came to R952.9m, 4.2% higher than the R914m in 2021. Nearly 56% of the FSCA’s expenditure is on staff remuneration, benefits and training. Expenditure on this line item rose by 8.9%, from R488.3m to R532m.
Remuneration to the Authority’s 12 executives (13 in the 2021 financial year) came to R43.1m, which was 11.6% lower than the R48.7m in 2021. The main reason for the decline in total executive remuneration was that paid-out leave was only R731 573, compared to more than R5m in 2021.
The FSCA’s operating deficit was R3.6m, compared to an operating surplus of R12.5m in 2021.
The overall deficit of R4.9m was a result of:
- A decline in the fair value of investments to R4.9m, compared to R23.9m;
- Higher losses from the disposal of assets, R824 947 compared to R108 528; and
- An increase in post-retirement medical scheme contributions of R5.5m, which was similar to the previous year’s R5.3m.
The FSCA’s accumulated surplus decreased to R355m from R361m. It will seek permission from National Treasury to retain the cash surplus for planned capital expenditure infrastructure projects.
The Authority ended the year with net assets of R490.7m (2021: R495.6m) and cash and cash equivalents at R559m (2021: R601m).
It received its fourth consecutive clean audit finding from the Auditor-General.
Ok so applying the same rules as they impose on the industry, they should lose their license and ability to trade ,but guess what they will come to us for higher levies.
Their salaries and renumeration are sky high and this needs to be severley cropped as they have been trying to do and do to our earnings.
Shame on you FSCA.
You reap what you sow.