Insurance & Reinsurance
On 21 April 2020 the FSCA issued FSCA General Notice 2 of 2020 ("FSCA Notice") in terms of section 279(1) of the Financial Sector Regulation Act, which provides for the extension of the period for submission of statutory returns by the following financial services entities (i) financial services providers, (ii) Collective Investment Scheme ("CIS") Managers, (iii) pension fund administrators, (iv) friendly societies; and (v) long and short-term insurers.
Inter alia, the FSCA Notice provides:
The FSCA Notice follows the recent PA Communiqué 1 of 2020 issued by the Prudential Authority on 8 April 2020, wherein the Prudential Authority extended the period for compliance with the specific reporting requirements set out in certain financial sector laws, which we discussed in our recent article titled "Financial Services regulation in times of COVID-19", which you can access here.
Difficulties experienced by insurers in complying with their statutory reporting obligations pursuant to COVID-19 was identified by the Prudential Authority and the FSCA as one of the immediate priorities which insurers should consider in their Joint Communication 1 of 2020 COVID-19: Regulatory response issued on 16 April 2020. This joint communication further sets out the said Authorities’ joint position concerning the COVID-19 pandemic and its impact on the economy, specifically, the South African insurance industry.
For a copy of FSCA General Notice 2 of 2020, please click here
For a copy of the Joint Communication 1 of 2020 COVID-19: Regulatory response, please click here.