Money for jam

Yesterday we ran a story on the fees that were being levied against the FSPs and today we can reveal that the representatives also contribute a tidy amount to the revenue stream of the FSB and the FAIS Ombud.

In fact they make up the lion's share of the revenue stream, based on shear numbers/volume.

Consider that each representative is being levied R267 for 2007 - for FAIS licencing and there are 140 000 people licenced as representatives, bringing in a cool R38m, into the coffers of the FSB.

On the other hand the Ombud charges R113 to the 140 000 people out there, and banks around R15.8m.

So the FSB revenue stream for 2007 is R38m + R21.5m or R59.5m for FSPs. The FAIS ombud generates R15.8m + R4.6m or R20.4m for representatives.

This means that between the two bodies FSPs and representatives generate R79.9m to be compliant.

Editor's thoughts:

*  The question that arises is what effect this additional expense has had on the product development business case for the product providers operating in the financial services sector. While this is a small amount in the global scheme of things one thing is certain, it was calculated into the cost of the product.

* The question in my mind is who funds the pfa? Well, it turns out to be the Minister of Finance, so there is no revenue stream there.