Outsourcing by an insurer

Outsourcing by an insurer

Requirements regarding outsourcing by an insurer are comprehensively set out in the Prudential Standard GOI 5 and one would think it is simple, but is it? Adv Freddie Eilers, MD of Assent Legal, penned this article for Cover magazine’s October edition. Many insurers outsource material and non-material business activities to providers for various reasons. Some of these reasons include an opportunity for Insurers to have access to expert...

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FSCA fines Steinhoff R1.5bn

FSCA fines Steinhoff R1.5bn

The Financial Sector Conduct Authority (FSCA) has imposed an administrative penalty of R1.5 billion on Steinhoff under Section 81 of the FMA 2012 – the highest penalty to date issued by the authority. In a news release on its website, the FSCA said it noted Steinhoff’s current financial position and in order to avoid penalising innocent Steinhoff shareholders further, in recognition of the fraud perpetrated on the Steinhoff Group by former...

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Should retirement funds invest in SOEs?

Should retirement funds invest in SOEs?

Maladministration, poor governance and corruption have had a devastating effect on the country’s ailing state-owned enterprises (SOEs), leaving them facing extensive financial difficulties. Business Day recently reported that financial institutions may approach the Constitutional Court if government forces pension funds to invest in bankrupt state-owned enterprises. This followed a proposal in the ANC election manifesto that government...

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Ensuring your succession plan

Ensuring your succession plan

The FSCA requires Financial Services Providers to have in place a continuity plan that ensures your clients are not left in the lurch should you exit your business. Taking this a step further, a succession plan also looks after your investment in your business, ensuring that you realise the worth of your hard work or that your beneficiaries are fairly compensated should you no longer be around. If your successor is not internal to your...

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The Prudential Authority’s 3-year regulatory requirements

The Prudential Authority’s 3-year regulatory requirements

Through the adoption of its regulatory strategy, the Prudential Authority’s (PA) will help market participants and the public understand the approach it will take in overseeing financial stability of the markets. Kuben Naidoo, Chief Executive Officer of the PA the Authority, was quoted in the FSCA Bulletin as saying the PA will follow a risk-based and proportional, forward-looking, outcomes-focused and integrated supervisory approach. The core...

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New laws affecting the financial landscape

New laws affecting the financial landscape

A number of news laws have or will be coming into effect this year, all of which affect the financial industry landscape. According to an article on Business Tech, these seven laws are: Conduct of Financial Institutions Bill – Outlines what customers and industry players can expect of financial institutions. It includes the implementation of the Treating Customers Fairly (TCF) principles. Competition Amendment Bill – Introduces...

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