Regulatory Alerts2020-04-20
Joint Communication 1 of 2020: COVID-19 Regulatory Response
The Prudential Authority and Financial Sector Conduct Authority issued this joint communication to outline regulatory responses mitigating the COVID-19 pandemic’s impact on South African insurers. Insurers must retain their Solvency Capital Requirement framework while benefiting from temporary tolerances for lower ratios, alongside prudent adjustments to dividends, bonuses, and premium relief. The Authorities will apply case-by-case supervisory interventions, extend reporting timelines, and exempt certain foreign exchange limits to ensure financial soundness without unduly relaxing regulatory standards.
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