In December 2016, National Treasury (NT) with the support of the Financial Services Board (FSB) published, for public comment, proposed amendments to the Regulations made under the Long-term Insurance Act, 1998 (“LTIA”) and the Short-term Insurance Act, 1998 (“STIA”).
This included reforms to the Retail Distribution Review and the draft amendments to the Binder Regulations published on 11 July 2014, the finalisation of which was deferred until the publication of the detailed RDR Phase 1 proposals.
The due date for submission of comments was 22 February 2017. An extension was granted to a number of commentators up until mid-March 2017.
A total of 40 commentators provided feedback on the draft Regulations through the formal consultation process. The NT in conjunction with the FSB undertook a comprehensive review of all comments received.
These commentators have now been provided with the FSB’s re-work of, and comments on, the amendments, following their input. Further comment is invited by 4 August after which the proposals will be submitted to National Treasury.
Whilst we are loath to expand on the details, as it is still open for discussion and change, we are cautiously optimistic about the Regulator’s response. A number of proposed concessions indicate that there is great awareness and understanding of the industry’s position on a number of issues, and a willingness to find an amicable, workable solution.
It is also important to note that provision is made for transitional periods to ensure effective phasing in of the new regulations.
Moonstone Legal and Compliance will be dealing with this in detail at our annual Roadshows planned for September this year.