Before the end of this month, NBFIRA management will present its board with proposed capital market fees and levies, following which these will be combined with the already approved schedules for micro-lenders, pension funds and the insurance sector for the minister's consideration. Once promulgated, fees and levies from the non-bank financial institutions are expected to contribute a significant portion of the P49.2 million deficit expected in NBFIRA's 2011/12 budget. Yesterday, NBFIRA CEO Oaitse Ramasedi said as schedules for pension funds, insurance and micro-lenders had already been approved by the board, directors would only have to consider proposed fees and levies for capital markets at their meeting later this month. "The fees and levies for sectors other than capital markets have already been approved by the board but they have not been forwarded to the minister," Ramasedi said. "All these proposals will be submitted to the minister at the same time. "We use the term of 'minister's approval,' but the (right) term is actually promulgation. The minister will pass regulations of the fees and levies and we will implement them. There's nothing further needed. "The regulations will be published in the Government Gazette and we will also share them with industry through face-to-face interactions, particularly if the minister effects changes on the proposals." Ramasedi said NBFIRA valued stakeholder interaction as evidenced by quarterly briefings held with various industry stakeholders on the fees, levies and other sectoral issues. He added that the meetings will continue during and after the approval of the proposed schedules by the minister. "We hold feedback meetings with industry every three months and November is the next date for such a meeting. This, however, does not mean we will have an answer for industry on the minister's decision on the fees and levies by that time," he said. The NBFIRA CEO revealed that consultative meetings will take place with insurance companies, brokers and pension funds between Monday and Wednesday next week.
Although various concerns will be thrashed out at the meetings, it is expected that the fees and levies issue will be on the lips of most participants. "These meetings are about us talking to industry on issues affecting them," he said. "Fees and levies are not the only issue, but right now they are topical. "For the insurance industry, the hot topic could be how far NBFIRA has gone in reviewing the laws governing the sector. "The agenda for the three meetings is the same, but we cannot hold one meeting because facilities cannot accommodate all participants."
