Regulatory Alerts2021-01-22
Added · Updated
Information Letter 3/2013: Guidance on Binder Functions and Remuneration
The Financial Services Board of South Africa issued Information Letter 3/2013 to provide regulatory guidance on activities constituting binder functions and incidental activities under the Long-term and Short-term Insurance Acts. The document mandates a standardized activity-based fee model and reporting format to ensure binder remuneration is reasonably commensurate with actual costs, addressing concerns over divergent fee interpretations. Insurers are required to align existing binder agreements with these guidelines within 90 days of the letter's issue date to enhance compliance and protect policyholder interests.
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