FSCA announces proposed levy increase for 2025/26
The increase is below the 6% CPI-related increase permitted by the Levies Act.
The increase is below the 6% CPI-related increase permitted by the Levies Act.
Eskom’s MYPD 6 revenue application indicates that the projected 36.15% price increase for FY2026 results from 10 new Negotiated Pricing Agreements, past regulatory decisions, rising coal-based energy costs, increased operating expenses, and an impending carbon tax.
FSPs will have to budget for an additional R32 per key individual or representative in the 2025/26 financial year.
Insights from Ninety One on the sector’s investment flows, fee trends, and revenue growth.
In line with previous financial years, FSPs will be the main contributors to the Authority’s revenue from levies.
The Office can no longer look to the FSCA to make up for any shortfalls in income.
Bridging finance from National Treasury may not be required now that it has certainty of receiving levy and special levy income.
Clarity on when a gain is considered revenue or capital.
A major concern is the contingent liability guarantees of municipalities and some of the state-owned enterprises.
Investors are likely to see the deficit and debt trajectories as tentative, given the risks that remain unresolved.
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