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BMW

NCR smacks BMW

Views ‘on-the-road-costs’ as not being in line with prescriptions On 3 August, we published an article on the National Credit Regulator’s (NCR) media statement, warning vehicle financiers (being registered credit providers) that they will be conducting a compliance monitoring exercise on vehicle licence and registrations fees payable under credit agreements. As part of this compliance […]

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Leads-To-Sales

Qualifications and Execution of Sales

The new Fit and Proper (F&P) requirements due for publication any day now contains reference to a new concept which aims to address a thorny issue, namely the different levels of complexity of products sold to the public. As pointed out last week, a major problem for the Regulator in terms of FAIS was to […]

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suitebox

The future of financial advice in SA

The SuiteBox client engagement and support tool delivers video meeting and digital signing capabilities to financial advisers. Rapid advances in fintech provide a host of solutions that streamline the delivery of financial advice, while driving customer engagement, enhancing productivity, minimising costs and ensuring workflow-embedded risk management and compliance. Among the most exciting of these fintech […]

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update

FSB Regulatory Updates

The FSB published the following information on draft documents for comment in its FAIS Newsletter 24. Conduct of Business Returns (CoBR) The draft FAIS CoBR was published for comment on 6 December 2016. Comments were received from 33 respondents, which include industry associations, compliance practices, FSPs and individual respondents. The feedback was collated and the Registrar is considering the […]

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ombudsman

In good faith

A case study recently published by the Short-term Ombudsman reiterates the basic principle that short-term insurance is a contract entered into in good faith and that there was no obligation on an insurer to verify the information at the sales stage of the policy. Mr Y submitted a claim for a single motor vehicle accident. […]

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Business Vision concept Businessman looking to the view with telescope. Looking to the future

Trends in Motor Insurance

At the launch of the 2016 Annual Report from the Short-term Ombud, she elected to deviate slightly from the usual statistical analysis to highlight some interesting trends from the report with particular reference to motor insurance. Motor makes up the majority of the matters that our office deals with, comprising 49% of the formal complaints […]

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clients

The Demise of Churning?

The good news is that the Regulator now understands that not all replacements are bad. One must question the rationale behind making the receiving insurer accountable for assessing whether a replacement is justified or not, given the enormous pressure from the top for production. The requirement that “…a managing executive of the insurer or a […]

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warning

New steps to curb Churning

The Retail Distribution Review (RDR) of 2014 contained several comments that expressed concern about the negative effects of “churning” which it described as “inappropriate or unnecessary replacement of policies driven by intermediary incentives”. For example, Proposal NN contains the observation that “Analysis of the current distribution landscape has pointed to concerns about up-front commission on […]

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fintech

Disruptive Technology in traditional insurance business

For most of us, the advent of technology in the industry is a bit like the famous saying back in the bad old army days: Hurry up and wait. A recent article in the magazine Raconteur made some very interesting comments about possible applications of technology in the way we currently do business, and the […]

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audit

Compliance audit on credit life insurance policies

Since the publication of the final credit life insurance regulations (the Regulations) that came into effect on 10 August 2017, Moonstone received numerous queries relating to the compliance requirements imposed by the Regulations. In the National Credit Regulator’s (NCR) annual report for the period 2016/2017, both the Minister and the NCR’s Credit Provider Compliance Manager specifically identified […]

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