In a time when doing what’s best for your client is equally as important as ensuring that you meet all the requirements that you, as an independent intermediary, must meet… the Financial Sector Conduct Authority (FSCA) has provided some much needed relief in respect of premium collection by independent intermediaries.
The FSCA released the exemption in favour of independent intermediaries for a period of 2 years from the effective date (16 March 2020). There are however specific controls that the independent intermediary needs to meet.
Here are the specific control obligations placed on the independent intermediary –
(i) account to the relevant short-term insurer for any premiums received properly and promptly;
(ii) ensure that the premium collected is appropriately ring-fenced from other operational activities of the intermediary to ensure the intermediary’s business operations and own funds are separately accounted for from premiums; and
(iii) ensure that the short-term insurer has access to current, accurate and complete data held by the independent intermediary regarding any of the short-term insurer’s policyholders, as and when requested.
Contact us today to assess if you or your independent intermediary/ies meet the conditions set out above to rely on the exemption.
Fathima Ahmod
Director: Ahmod Consulting (Pty) Ltd
Ahmod Consulting 