Regulatory Alerts2018-12-18
RDR Status Update: Proposal TT - Special Remuneration Dispensation for the Low-Income Market
The Financial Sector Conduct Authority implemented a special remuneration dispensation for the low-income market by introducing uncapped commission structures for microinsurance and funeral policies alongside adjusted FAIS competency requirements to ensure intermediary viability and reduce advisory barriers. To address remaining gaps for low-income savings and investment products, the regulator will conduct stakeholder engagements in early 2019 to assess current offerings and determine whether additional remuneration dispensations or competency adjustments are necessary. These measures aim to balance financial inclusion with fair customer outcomes while preventing an advice gap in the lower-end market.
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