ATC220601: Report of the Standing Committee on Finance on the Financial Sector and Deposit Insurance (Administration) and Deposit Insurance Premiums Bill [B4-2022] Dated 18 May 2022

Finance Standing Committee

Report of the Standing Committee on Finance on the Financial Sector and Deposit Insurance (Administration) and Deposit Insurance Premiums Bill [B4-2022] Dated 18 May 2022.
 

The Standing Committee on Finance, having considered the Financial Sector and Deposit Insurance (Administration) and Deposit Insurance Premiums Bill [B4-2022] (National Assembly – Section 75) referred to it, reports the Bill with amendments [B4A – 2022] as follows: 

 

1. INTRODUCTION AND BACKGROUND
   1. The Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Bill (“Levies Administration Bill” or “the Bill”) seeks to make provision for the collection and administration of levies imposed in terms of the Financial Sector and Deposit Insurance Levies Bill, 2022.
   2. This Bill is a Section 75 (of Constitution), ordinary bill which does not affect the provinces. 
   3. This Bill amends the Financial Sector Regulation Act, 2017, (FSRA) in order to provide for the administration of levies. It also provides for the imposition, collection and administration of deposit insurance premiums. It also amends the Pension Funds Act, 1956, the Banks Act, 1990, the Mutual Banks Act, 1993, and the Financial Advisory and Intermediary Services Act, 2002, in order to align them with the FSRA, 2017, in respect to the financing of financial sector bodies. 
       
2. PUBLIC PARTICIPATION
   1. The Levies Administration Bill was introduced into the National Assembly by the Minister of Finance on 21 January 2022. The Committee was briefed on the Bill by the National Treasury on 09 February 2022. A call for public comments was issued by Parliament thereafter and only written submissions were made. The following organisations made written submissions to the Committee: Banking Association of South Africa (BASA), Financial Intermediaries Association of South Africa (FIASA), Johannesburg Stock Exchange (JSE), Masthead, Moonstone, Outsurance, South African Insurance Association, and Wealth Tap.
   2. On 11 May 2022, officials from the National Treasury and the affected regulatory bodies responded to the written submissions. As a result of the submissions, a number of amendments were made to the original A version of the Bill. The B version of the Bill was submitted to the Committee on 16 May and the Committee deliberated on 17 May 2022.
   3. NT reported that prior to the Bill being tabled, it undertook extensive consultations with affected stakeholders, including the regulatory agencies and industry.
       
3. KEY ISSUES RAISED IN THE SUBMISSIONS
   1. Only BASA made technical inputs on this Bill which led to its revision in the proposed B version of the Bill.
       
4. CONCLUSION
   1. The Standing Committee on Finance, having considered the Financial Sector and Deposit Insurance (Administration) and Deposit Insurance Premiums Bill [B4-2022], reports the Bill with amendments [B4A – 2022].

 

The Democratic Alliance (DA) reserve their position.

 

Report to be considered