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Articles of Interest

F&I Services – a profession or occupation?

F&I Services – a profession or occupation?

For years many those performing F&I services have considered themselves ‘professionals’ despite no such recognition from their DPs. Interestingly, the Financial Sector Conduct Authority (FSCA) clearly agrees with the view of those F&I’s that are passionate...

Vehicle automation should mean zero liability for drivers

Vehicle automation should mean zero liability for drivers

Full vehicle automation should mean zero liability for drivers. That is the main point being put forward by the Association of British Insurers (ABI) and Thatcham Research as rules and standards are being developed ahead of the automated driving future. “There will...

How good is your Compliance Officer?

How good is your Compliance Officer?

There is global acceptance that the role of a compliance officer is to ensure that a company is conducting its business in full compliance with all appropriate laws and regulations that pertain to its particular industry. Strangely, the South African insurance...

Insurance Broking, a profession or occupation?

Insurance Broking, a profession or occupation?

For many years, insurance brokers have considered themselves ‘professionals’ despite no such recognition from other professions. Interestingly, the Financial Sector Conduct Authority (FSCA) clearly agrees with them about the profession of insurance broking. Although...

Is There a Future for the External Compliance Practice?

Is There a Future for the External Compliance Practice?

If the FAIS Act (section 17) hatched the ‘FAIS’ compliance officer, it follows that the forthcoming Conduct of Financial Institutions Act (CoFI) is likely to dispatch it. So where to from here for the external compliance practice, and the ‘FAIS’ compliance practice in...

Outsourcing Rules – can Insurers really comply?

Outsourcing Rules – can Insurers really comply?

It was more than 7 years ago when the first clear guidelines for outsourcing were published by the Regulator. Directive 159.A.I defined ‘outsourcing’ as an arrangement of any form between an insurer and another person, whether that person is supervised under any law...

Principles based regulation – do we know how it will work?

Principles based regulation – do we know how it will work?

We have been well informed by the Financial Sector Conduct Authority (FSCA) that the financial services Regulation will be ‘Principles based’ rather than the current ‘rules based’. But do we know what that entails? What we do know is that it relates to treating...

Tier 2 Products – yesterday, today and tomorrow

Tier 2 Products – yesterday, today and tomorrow

Although assistance insurance products (particularly funeral) have been around for a long time, the first we heard of ‘simplistic’ or ‘less-sophisticated’ general products, which the FSCA now refers to as ‘tier 2’ products, was back in 2005 although the...

Twin Peaks and the motor industry

Twin Peaks and the motor industry

The Financial Sector Regulation Act formalises the Regulator’s ‘Twin Peaks’ financial services regulatory model, the intention of which is to ensure that financial services customers are treated fairly. It follows that one of the key features of this model is to...

UMAs – Cancelling or transferring a book of business

UMAs – Cancelling or transferring a book of business

Although underwriting managers (UMAs) and brokers are considered to be intermediaries in terms of the FAIS Act, they have very different roles. When a broker cancels a policy or transfers a book of business from one insurer to the other, the broker is acting on behalf...