• Phase 1 of the 2014 Retail Distribution Review ("RDR") which proposes a number of improvements to how financial products are distributed and sold, including principles for remuneration of intermediaries to address conflicts of interest (especially those relating to advisors representing both insurers and the consumer), ensuring that insurers who outsource critical functions remain ultimately responsible for those functions, and curbing poor advice and intermediary practices.

• Improvements to the requirements for binder agreements in support of the RDR which limit who may enter into a binder agreement, what sort of activity may be outsourced and what remuneration may be paid in a binder agreement, so as to address conflicts of interest.

• Addressing identified concerns with respect to consumer abuses in the consumer credit insurance market. The amended Regulations and PPRs introduce alignment with planned dti Regulations dealing with caps on mandatory credit life premiums, as well as introducing a range of principles and requirements on fair treatment of policyholders that also apply to consumer credit insurance products.

• Improving policyholder protection in the Ombud system by compelling the insurer to display Ombud information to policyholders, keeping records of complaints and requiring cooperation with the insurance Ombuds.

• The introduction of requirements for claims management procedures, monitoring and analysis of complaints and the reporting of complaints information to the regulator and Ombuds.

• Regulations on Advertising, Brochures and Similar designed to ensure fair and not-misleading communication with potential policyholders.

• Appropriate minimum requirements for claims management.

• Additional steps to ensure protection for policyholders, including principles to inform premiums and premium reviews, minimum data governance requirements and negative option marketing.

• Alignment with international standards in terms of the International Association of Insurance Supervisor’s Insurance Core Principles.

• Alignment, in certain respects, with the Financial Advisory and Intermediary Services Act, 2002.

• Closing regulatory gaps and effecting technical improvements to clarify the intent and purpose of certain provisions.

Nothing contained herein should be construed as financial advice and is meant for information purposes only.

Discovery Life Investment Services (Pty) Ltd branded as Discovery Invest is an authorised financial services provider. Registration number 2007/005969/07.

Product Rules and Terms and Conditions Apply.
 

• Financial Sector Conduct Authority: The move from FSB to the new FSCA is envisaged to be effective from April 2018.

• The Insurance Bill was passed by the National Assembly with a planned effective date of July 2018.

• The Conduct of Financial Institutions Bill will be published early in 2018 for comment with a view to tabling it in Parliament in the 2^nd half of 2018.

• Tranche 1 PPR amendments and Tranche 1 Insurance Regulations amendments were published on 15 December 2017 and became effective on 1 January 2018.

• The planned effective date for Equivalence of Reward is 1 January 2018.

• The Third Party Cell Captive Insurance Position Paper was scheduled for 15 December 2017.

• Publication of a comment document on Adviser Categorisation and the “Two Tiers” product distinction is expected early in 2018.

• A report on a Short-term Insurance Intermediary Activity Analysis is expected early in 2018.

• Comments on Additional PPR and Insurance Regulations amendments in respect of Tranche 2 are expected to be called for in April 2018 with a possible effective date in July 2018.

• Short Term Insurance Underwriter: Milnerton, Cape Town - The minimum experience being 3 years, preferably living in the vicinity of the brokerage and with the following minimum requirements: Read More