Prudential Authority in South Africa issues the Prudential Standards for audit requirements which commence on 1 January 2022
Assurance et réassurance
On Monday 31 January 2022, the Financial Sector Conduct Authority (FSCA) issued the following Insurance Notices:
The Notices extend the period of exemption previously issued by the FSCA on 30 October 2020 in FSCA INS Notice 1 of 2021 and FSCA INS Notice 2 of 2021, and on 29 January 2021 in FSCA Ins Notice 1 of 2021 and FSCA Ins Notice 2 of 2021 (previous Exemption Notices), which exemption enabled the payment of additional financial compensation over and above statutory regulated commission to independent intermediaries as consideration for the direct collection of premium subject to compliance with certain conditions. Our previous communication regarding the previous Exemption Notices can be accessed here.
The exemption contained in the previous Exemption Notices however was due to lapse on 31 January 2022.
Notably, the FSCA in its communication which accompanied the Notices titled “FSCA Communication 1 of 2022 (INS)” provides that until further progress has been made regarding amendments to the premium collection framework, the FSCA wishes to continue to accommodate the payment of additional financial compensation over and above statutory regulated commission to independent intermediaries as consideration for the direct collection of premium subject to compliance with certain conditions. Accordingly, the exemptions contained in the Notices will now expire on 31 January 2023.
Of import, the Notices contain no changes to the requirements enumerated in the previous Exemption Notices.
Notably, the FSCA warns that the Notices should not be construed as intending to endorse undesirable practices in respect of the interest sharing model (or percentage-based remuneration) and other undesirable practices.
The Notices and the FSCA communication which accompanied the Notices can be accessed here: