Icon

Directory

IconAccounting & Tax
IconActuaries
IconAdministrators
IconAppraisers & Valuers
IconArbitration Services
IconASIB
IconAssessors & Loss Adjusters
IconAssist and Lifestyle Benefits
IconAssociations & Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBroker Acquisition Financing
IconBrokers for Brokers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompany Secretarial Services
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconDefensive Driver Training
IconEducation and Training
IconEmergency Medical Rescue
IconFAIS
IconFire, Storm, Flood Damage Specialists
IconForensic Investigation Services
IconHuman Resources
IconIndustrial Cleaners
IconInformation Technology and Software Partners
IconInsurance Companies
IconLegal
IconLightning Damage & Surge Protection Specialists
IconNiche Insurance Products
IconOmbud
IconOutbound Sales
IconOutsourcing Companies
IconPolicy Administration
IconPremium Financing
IconPublic Loss Adjustors
IconPublications
IconRating Agencies
IconReference Books & Material
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconSpecialized Claims Investigations & Assessing
IconSurveys and Research
IconTraining Courses & Workshops
IconUnderwriting Managers
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
IconWholesale Brokers
IconZZZZZZ
Advertise Here
  Subscribe To »

New financial regulations herald the age of the consumer

Published

2010

Tue

07

Sep

South Africa’s financial services regulatory bodies have been drafting and implementing a spate of new regulations – including the Consumer Protection Act, Conflict of Interest amendments and Treating Customers Fairly (TCF) guidelines – to help better protect the rights of the consumer.

 

According to Christelle Fourie, Managing Director of MUA Insurance Acceptances, the leading executive home and motor insurer, these new requirements suggest South Africa’s financial services industry has finally embraced the age of the consumer. “New financial regulations are putting the rights of the consumer first. From now on all product providers, including financial services companies, will need to be transparent and open when dealing with clients.”

 

She says these developments should help to promote the reputation and integrity of the financial services industry.

 

“The purpose of the Consumer Protection Act is to protect and enforce the rights of the consumer and it places an increased emphasis on the part of product providers to ensure they meet strict guidelines.”

 

“Insurers will need to make sure that no terms in the policy document are unfair, unreasonable or unjust. A court will also have the power to rule in favour of the insured against the insurer on the basis of any ambiguous clauses.”

 

Fourie says Conflict of Interest (COI) amendments to the FAIS Code of Conduct, which are being introduced by the Financial Services Board to address concerns regarding conflicts of interest between financial services providers, brokers and clients, should also go a long way to help further protect consumers.

 

“People often assume that others have already investigated the safety and integrity of financial services suppliers and therefore rely heavily on their broker or the product provider to assist them to receive the best possible financial service to fit their needs.”

 

She says these new requirements are particularly important given the bad reputation some parts of the industry have suffered in recent years. “All participants have a professional interest in ensuring that confidence is maintained in the financial services industry and it is therefore essential that we prioritise these changes.”

 

Fourie says that while there is a huge emphasis on companies and brokers to familiarise themselves with the new legislation, it is equally important for consumers to understand what their rights are and what they should expect from their providers.

 

A further initiative, inspired by similar actions by the Financial Services Association (FSA) in the UK, is the Treating Customer Fairly (TCF) framework, which aims to ensure that companies must pay due regard to the interest of their customers and must treat them fairly. “This is an essential development for the South African financial services landscape as its purpose is to restore faith in the financial services industry, starting with senior management.

 

“All the recent developments and regulations point to the fact that as financial services providers, we must conduct our business with integrity and professionalism by putting the interest of the customer first,” concludes Fourie.

 
Source: MUA Insurance Acceptances
 
« Back to previous page Print this page » |
 

Breaking News »

Fast-changing Arctic and North Atlantic conditions bring route risks

Climate change is impacting ice hazards for shipping, freeing up new trade routes in some areas, while increasing the risk of ice in others.   There was another milestone for Arctic shipping ...
Read More »

  

Damage arising from marijuana operations not covered by policy (US)

  Sandra Sithole, Director Norton Rose Fulbright South Africa Inc.     A US appeals court in August 2018 found that an insurer does not have to indemnify its insured ...
Read More »

  

Associated Compliance Newsletter 068 – August 2018

The August 2018 Associated Compliance Newsletter has been published in the Insurance Gateway® Knowledge Base. The compliance landscape has become increasingly time consuming and complex to navigate. It will ...
Read More »

  

SAIA Consumer Education initiative recognised as ‘best practice’

Johannesburg: In its latest infographic on “The importance of financial education in promoting financial inclusion”, the Belgium based Global Federation of Insurance Associations (GFIA) commended the ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Life »

Image

Retirement »

Image
Image
Image
Image
Image
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

Whole-Life Insurance:

This is a variation on term insurance. In the case of universal life policies the life office undertakes to pay the greater of the sum insured or investment account upon the death of the life insured whenever that may take place. For conventional policies the sum insured (including bonuses, if applicable) is paid out. There are, however, a number of variations on the premium payment term, for premiums can be arranged to cease at a defined age or ...
More Definitions »

 
 
By using this website you agree to the Terms of Use.
Copyright © Stoker Risk & ICT (Pty) Ltd 2004 - 2019.
All Rights Reserved.
Icon

Advertise

  Icon

eZine

  Icon

Contact IG

Icon

Media Pack

  Icon

RSS Feeds