Annexure B to the supplementary regulations published in respect of the National Lockdown includes the term “Insurance services” in the list of essential services. This term is unfortunately not defined anywhere further in the regulations or the empowering legislation and that leaves FSPs in the dark about where their services fit in. In the absence […]
A recent determination by the Financial Services Tribunal concerned the PFA’s order to release withdrawal benefits to employees. The employer challenged this decision as it originally withheld the benefits based on a disciplinary inquiry into allegations of soliciting and taking bribes against the two employees. What does the Pension Fund Act say? Section 37D(1)(b) of […]
The announcement by the Council for Medical Schemes (CMS) that no primary health insurance plans and low-cost benefit packages would be permitted after March 2021 was met by severe criticism from the industry. The Board of Healthcare Funders (BHF) is the latest body to raise its voice in protest. In a recent broadcast interview, Cathy […]
The Association for Savings and Investment South Africa (ASISA) recently released the Collective Investment Schemes (CIS) industry statistics for the quarter and year ended December 2019. It shows strong net inflows of R123.2 billion for 2019, despite recording a rare quarterly net outflow in the fourth. The statistics further indicates that the local CIS industry held assets […]
A recent Financial Services Tribunal case highlights the jurisdiction of the Pension Funds Adjudicator (PFA) in so far as group life insurance scheme falls under the Pension Funds Act are concerned. Case background ● Mr B was the spouse of the late Mr B (the deceased). ● The deceased was an employee of the ABSA […]
Depending on the financial product/s which financial advisers are authorised for, new entrants to the industry may need to obtain an appropriate qualification for the applicable financial products within six years from their date of first appointment (DOFA) for that financial product. Not only is it a regulatory requirement – these competency requirements also have […]
The Risk Barometer is an annual survey on global business risks from Allianz Global Corporate & Specialty (AGCS). The 2020 edition incorporates the views of a record 2,718 respondents in over 100 countries. For the first time ever, cyber incidents (39% of responses) ranks as the most important business risk globally in the ninth Allianz […]
The abhorrent practise of submitting a single premium investment as a recurring premium policy to earn a substantially higher commission is nothing new. If you then, in addition, destroy documentary evidence in the hope that you will not be found out, you should expect dire consequences. An even worst-case scenario: if you repeat such a […]
In a recent Short-term insurance case study, the Ombudsman for Short Term Insurance (OSTI) emphasised that short-term insurance contracts are entered into in good faith. “Under common law, a policyholder when requesting cover must make full disclosure of all matters material to the insurer’s assessment of the risk. This principle is founded on the insurer’s […]
The results of the Momentum/Unisa Household Financial Wellness Index show that although the number of financially unwell households increased, they are not quite as ‘financially unwell’ as before. These results, based on a nationally representative survey of 3 073 households, were recently presented at the very first Momentum Science of Success Festival. The survey specifically focused […]
