The Financial Sector Conduct Authority has extended until 2029 a narrow exemption for certain juristic representatives that collect and handle insurance premiums on behalf of insurers.
FAIS Notice 43 of 2026, published on 30 June, extends the existing exemption by replacing its previous expiry date of 30 June 2026 with 30 June 2029. The notice came into effect on 1 July.
The exemption, introduced in 2021, originally expired on 31 December 2023. It was amended in 2023 to extend its operation until 30 June 2026 and has now been extended for a further three years.
Click here to download FAIS Notice 15 of 2021 – Notice on Exemption of Juristic Representatives from section 13(1)(c) of the Act.
Notice 43 does not change the scope or conditions of the exemption; it simply keeps the existing dispensation in place until 30 June 2029.
Section 13(1)(c) of the Financial Advisory and Intermediary Services Act generally provides that a representative may not render financial services or contract in respect of financial services other than in the name of the financial services provider of which it is a representative. The exemption allows qualifying juristic representatives to perform specified premium-related services under prescribed conditions.
The exemption applies only to a juristic representative that:
- is a company or close corporation;
- is appointed as the representative of only one FSP; and
- has a written mandate from that FSP to render a specific financial service on its behalf.
The exemption is available only where the FSP is a Category I or Category IV authorised FSP that is also an insurer and satisfies the requirements set out in the exemption notice.
The exemption applies only where the juristic representative performs the specific financial service of collecting, receiving, holding, or otherwise dealing with premiums on behalf of the insurer in respect of insurance products issued by that insurer.
It does not provide a general exemption for juristic representatives or apply to all financial services rendered on behalf of an insurer.
The exemption is subject to several conditions.
The juristic representative must:
- have a written mandate from the insurer at all times;
- obtain annual written confirmation from the insurer that it continues to meet the qualifying criteria;
- comply with the applicable disclosure requirements in the General Code of Conduct relating to the exemption; and
- ensure that its mandate provides that payment of a premium to the juristic representative is deemed to be payment to the insurer.
The insurer, in turn, must be satisfied that the arrangement will not materially increase its risk, impair its governance framework or regulatory oversight, or compromise the fair treatment of or continuous and satisfactory service to clients. It must also monitor, manage, and regularly review the juristic representative’s performance and compliance with its mandate.
Failure by either the juristic representative or the insurer to comply with the applicable conditions will result in the exemption no longer applying to that juristic representative.
