Regulatory Alerts2022-03-18
FSCA Exemption of Independent Intermediaries from Commission Clawback Under Regulation 5.4
The Financial Sector Conduct Authority (FSCA) has published a draft exemption to relieve independent insurance intermediaries from the mandatory commission clawback rule under Regulation 5.4 of the Short-term Insurance Act. This exemption applies when an insurer refunds a premium due to the policyholder’s material misrepresentation or non-disclosure, ensuring intermediaries retain earned remuneration if they properly serviced the policy and bear no fault. Interested parties may submit written comments using the provided template to FSCA.RFDstandards@fsca.co.za by 22 April 2022.
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