SAIA

South African Insurance Association

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Governance Risks Update

Solvency Assessment and Management (“SAM”)

Insurance Bill
The Insurance Bill, 2016 is still to be considered by Parliament following the parliamentary process on the Financial Sector Regulation Bill.

Due to the delay in the parliamentary process, the Financial Services Board (FSB) has confirmed that the original SAM “go live” date of 1 January 2017 is no longer attainable and that a more realistic SAM “go live” date is 1 July 2017.

Reinsurance Regulatory Review
The Reinsurance Regulatory Review final proposals were published by the FSB in a Position Paper on 8 September 2016. The SAIA will engage with its members in respect of any concerns thereon and liaise with the FSB accordingly.

Taxation Laws Amendment Bill, 2016 (TLAB)
Following the National Treasury’s (NT) and the South African Revenue Service’s publication of the Taxation Laws Amendment Bill, 2016 (TLAB), the SAIA requested comments from its members on the TLAB and a submission was made on 9 August 2016.

A further meeting was held by the NT on 1 September 2016 to engage with both long and short-term insurers on submissions made. The SAIA attended this meeting and followed up with a further written submission to the NT on the proposed wording for the amendment to section 28(3) of the Income Tax Act which deals with the tax treatment of cell captive insurers and cells.

For more information contact Easvarie Naidoo on Easvarie@saia.co.za

Update On The Financial Sector Regulation Bill

An update on the Financial Sector Regulation Bill has been published on 21 October 2016, following deliberations on the July 2016 version of the FSR Bill together with a comments matrix on issues raised in the Standing Committee on Finance (“the SCOF”) meetings, as well as a track change-version (relative to the July 2016 version) of the Bill, for ease of reference and guidance only.

Further considerations on the Bill are anticipated to take place in November 2016 and will be timeously communicated by the SCOF. A SAIA General Circular SG 2016/043: Update on the FSR Bill, together with the relevant attachments, was circulated to our members on 24 October 2016, inviting members to submit comments and / or concerns on the Bill, if any, to the writer via e-mail on aatika@saia.co.za to facilitate further engagements if necessary.

FINANCIAL ADVISORY AND INTERMEDIARY SERVICES ACT, 2002: THE FAIS ACT- INVITATION TO COMMENT ON THE DRAFT PROPOSED AMENDMENTS TO THE FIT AND PROPER REQUIREMENTS FOR FINANCIAL SERVICES PROVIDERS AND REPRESENTATIVES, 2016. 

The invitation to comment on the proposed amendments to the Fit and Proper Requirements for Financial Services Providers and Representatives, was published by the Deputy Registrar of Financial Services Providers for public comment, on 21 October 2016. In addition the Financial Services Board published a regulatory response matrix to public comments received on the proposed amendments published on 17 December 2015. The closing date for the submission of comments is 15 December 2016.

The SAIA will be drafting an industry submission. As such members were requested to submit written comments on the proposed amendments electronically to aatika@saia.co.za by no later than 12H00 on Monday, 21 November 2016, to facilitate a timeous submission.