RDR and Healthcare Advisers

Under the heading “Scope Limitations”, the discussion document on the retail distribution review states:

Where distribution of medical schemes is concerned, certain aspects of the distribution model are regulated by FAIS, while the Medical Schemes Act 131 of 1998 also imposes supplementary requirements – particularly in relation to intermediary remuneration. Co-ordination with the Council for Medical Schemes will be necessary to consider how best to ensure that the objectives of this RDR are achieved in relation to health benefit brokers and medical scheme distribution.

This is an issue that was raised on more than one occasion in this forum and, whilst being careful of raising false expectations, we are quietly hopeful that this anomaly will be addressed as part of this overall review.

It certainly seems unfair that healthcare advisers have to comply with even more regulations than their counterparts in other sectors, yet have a handicap in terms of income in view of the cap imposed by the CMS.

Perhaps the time has come to move healthcare providers into the same fold as other advisers, with equal treatment.

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