Regulatory Alerts2021-01-29
FSCA Communication 1 of 2021 (INS): Exemption for Direct Collection of Premiums
The Financial Sector Conduct Authority published FSCA INS Notices 1 and 2 of 2021 to substitute its October 2020 exemption notices governing the direct collection of insurance premiums. These replacement notices temporarily remove the restriction on percentage-based remuneration for twelve months, enabling industry participants to adjust their business models and technological systems while maintaining compliance with existing regulations. The FSCA clarified that direct collection activities remain classified as intermediary services rather than outsourcing, thereby requiring fair, cost-based remuneration and formal intermediary agreements to prevent double-charging policyholders.
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