[Section 239 heading substituted by the Schedule: Amendment of Laws: Section 4 of the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act, 2022 (Act No. 12 of 2022), Notice No. 1512, GG47696, dated 9 December 2022, per section (d), item (6)(a) of Commencement Notice No. 3188, GG48291, dated 24 March 2023]
| (a) |
a budget in accordance with section 248 that includes an estimate of its expenditure; |
| (b) |
a proposal for the fees that will be charged and the levies and deposit insurance premiums that will be imposed by the financial sector body; and |
| (c) |
projected estimates of its expenditure for next 2 financial years. |
[Section 239(1)(b) substituted by the Schedule: Amendment of Laws: Section 4 of the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act, 2022 (Act No. 12 of 2022), Notice No. 1512, GG47696, dated 9 December 2022 - effective 1 June 2023 in preparation for the 2024/2025 financial year in respect of the budget and fees and levies proposals of financial sector bodies other than the Corporation for Deposit Insurance and 1 June 2024 in preparation for the 2025/2026 financial year in respect of the budget and deposit insurance levies and deposit insurance premiums proposals of the Corporation for Deposit Insurance per section (d), item (6)(b) of Commencement Notice No. 3188, GG48291, dated 24 March 2023]
| (2) |
A proposal for levies may include a proposal for one or more special levies, and in that case, the estimate of expenditure must include an estimate for the special expenditure in relation to a special levy proposal. |
| (3) |
An estimate of expenditure for a financial year may include provision for one or more reserves, but the total accumulated reserves included in the estimate of expenditure may not exceed 15% of the total estimated expenditure, excluding the reserves. |
| (4) |
The financial sector body must take into account submissions made in respect of the budget as well as the fees and levies proposals, which it receives in terms of section 240. |
| (5) |
The financial sector body must submit the finalised budget, together with the fees, levies and deposit insurance premium proposals, to the Minister. |
[Section 239(5) substituted by the Schedule: Amendment of Laws: Section 4 of the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act, 2022 (Act No. 12 of 2022), Notice No. 1512, GG47696, dated 9 December 2022 - effective 1 June 2023 in preparation for the 2024/2025 financial year in respect of the budget and fees and levies proposals of financial sector bodies other than the Corporation for Deposit Insurance and 1 June 2024 in preparation for the 2025/2026 financial year in respect of the budget and deposit insurance levies and deposit insurance premiums proposals of the Corporation for Deposit Insurance per section (d), item (6)(c) of Commencement Notice No. 3188, GG48291, dated 24 March 2023]
| (6) |
The Minister must be allowed a period of at least 30 days to consider the proposals and provide comments, if any. |
| (a) |
In respect of the fees proposals for the first financial year following the commencement of this section, the Minister must approve the proposals for all the financial sector bodies. |
[Section 239(7) substituted by the Schedule: Amendment of Laws: Section 4 of the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act, 2022 (Act No. 12 of 2022), Notice No. 1512, GG47696, dated 9 December 2022 - effective 1 June 2023 in preparation for the 2024/2025 financial year in respect of fees and levies proposals of financial sector bodies other than the Corporation for Deposit Insurance and 1 June 2024 in preparation for the 2025/2026 financial year in respect of deposit insurance levies proposals of the Corporation for Deposit Insurance per section (d), item (6)(d) of Commencement Notice No. 3188, GG48291, dated 24 March 2023]
(7A)
| (a) |
In respect of deposit insurance premium proposals by the Corporation, the Minister must approve the proposals for each financial year following the commencement of this section. |
| (b) |
In respect of deposit insurance premium proposals, the Minister may amend Schedule 5, with the concurrence of the Corporation, and after having published a proposed amended Schedule in the Gazette for public comment for a period of at least 30 days, either by submitting an amended Schedule to Parliament for approval, in accordance with paragraphs (c) to (j), or in accordance with paragraphs (k) to (m)— |
| (i) |
to give effect to a proposal for deposit insurance premiums made by the Corporation and which proposal has been submitted to the Minister in terms of subsection (5); or |
| (ii) |
to specify the meaning of any terms contained in the formulae set out in Schedule 5. |
| (c) |
Parliament must approve, adopt amendments to or reject an amended Schedule within three months of the date of tabling of the amended Schedule. |
| (d) |
If Parliament does not pass a resolution approving, adopting amendments to or rejecting the amended Schedule within three months of the date of tabling, Parliament is deemed to have approved the amended Schedule, and— |
| (i) |
the Minister may then publish the amended Schedule in the Gazette; and |
| (ii) |
the amended Schedule takes effect from the date of publication in the Gazette. |
| (e) |
An amendment to Schedule 5 that is submitted to Parliament for approval must be referred to the respective committees on finance. |
| (f) |
The committee on finance must— |
| (i) |
conduct public hearings on the proposed amended Schedule 5; and |
| (ii) |
report on the proposed amended Schedule 5 to the relevant House. |
| (g) |
If a committee on finance proposes amendments to the amended Schedule 5 that has been tabled for approval by Parliament, the Minister must be given at least 14 days to respond to the proposed amendments before the committee reports to the House. |
| (h) |
The report of a finance committee referred to in this subsection must indicate the manner in which the proposed amendments are consistent with the Fund being able to make the required payments in terms of Chapter 12A and referred to in section 166BG(1). |
| (i) |
The report of a committee on finance must include the comments of the Minister on any proposed amendments to the proposed amended Schedule 5 as tabled. |
| (j) |
If Parliament approves or adopts amendments to the amended Schedule as tabled, the Schedule approved or adopted by Parliament takes effect on the date of such approval or adoption by Parliament, and the Minister must then publish the Schedule, as approved or adopted, in the Gazette. |
| (k) |
The deposit insurance premiums in Schedule 5 will be increased annually by the arithmetic mean of the Consumer Price Index as published by Statistics South Africa in the preceding calendar year, unless the Minister by notice determines that there must be no increase or an increase less than that annual rate of increase. |
| (l) |
Schedule 5 may be amended by the Minister, by notice in the Gazette, to give effect to an increase in deposit insurance premiums referred to in paragraph (k), and does not require submission to Parliament for approval, but a copy of the notice must be tabled in Parliament for information purposes. |
| (m) |
An amended Schedule 5 referred to in paragraph (k) takes effect on the date of the publication of the notice, referred to in paragraph (l), in the Gazette. |
[Section 239(7A) inserted by the Schedule: Amendment of Laws: Section 4 of the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act, 2022 (Act No. 12 of 2022), Notice No. 1512, GG47696, dated 9 December 2022 - effective 1 June 2024 per section (d), item (6)(e) of Commencement Notice No. 3188, GG48291, dated 24 March 2023]
| (8) |
In respect of the Tribunal, the Minister must approve the fees and levies proposals for any financial year following the commencement of this section. |
(9)
| (a) |
In respect of financial sector bodies other than the Tribunal, for any financial year other than when subsection (7) applies, the Minister must approve the fees or levies proposals, if the fees or levies proposals are based on an estimate of expenditure in excess of the amount calculated as— |
previous year basis x 1.025 x (current index ÷ previous index)
| (b) |
For the purposes of paragraph (a)— |
"current index"
means the value of the index at the date the amount is to be indexed, or if the value is not available, the latest available value for the purposes of the preparation of fees and levies proposals for the current financial year;
"index"
means the Consumer Price Index, as published by Statistics South Africa;
"previous index"
means the value of the index that was used for the value of the "current index" in the fees and levies proposals prepared for the previous financial year; and
current index
in the fees and levies proposals prepared for the previous financial year; and
"previous year basis",
for a financial year, means the estimate of operating expenditure adopted in terms of this section for the financial year before the year for which the calculation is being done.
Statistics Act, 1999
