Insurance Bill B1B, as amended by the Standing Committee on Finance was passed in the National Assembly on 28 November 2107. It will now be referred to the National Council of Provinces for consideration. The planned effective date is July 2018.
The preamble to the Bill reads:
- To provide for a legal framework for the prudential regulation and supervision of insurance business in the Republic that is consistent with the Constitution of the Republic of South Africa, 1996 and promotes the maintenance of a fair, safe and stable insurance market;
- to introduce a legal framework for microinsurance to promote financial inclusion; to replace certain parts of the Long-term Insurance Act, 1998, and the Short-term Insurance Act, 1998; and to provide for matters connected therewith.
Of particular significance is the section on Key Persons and Significant Owners:
‘‘key person’’ means—
- a director;
- a senior manager;
- a head of a control function;
- an auditor referred to in section 32;
- a trustee of a trust referred to in section 41; and
- a representative and a deputy representative of Lloyd’s or a branch of a foreign reinsurer referred to in section 34;
The Prudential Authority will prescribe fit and proper requirements for key persons and significant owners of an insurer or a controlling company. There are also very specific requirements for their appointment, change in circumstances and the termination of the appointment of key persons.
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