conflict of interest
Conflict of Interest
Submitted by byrnie on Thu, 2011-04-21 09:41Image/Video:
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The proposed changes to conflict of interest legislation will bring about balance in a very competitive South African insurance industry.
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Currently under review, the proposed changes to conflict of interest legislation will bring about balance in a very competitive South African insurance industry. With players ranging in size and budget, the legislation aims to provide for a competitively neutral space for players to compete on an equal footing.
The strength of the MUA brand and our ability to compete regardless of immaterial financial matters, give us confidence that we will benefit from this new change, spearheaded by FAIS.
It is easy for some to assume that insurance offers presented to them are pure and without the intention to influence or persuade buying decision. However, this trust can be abused and often lead to entrapment where consumers are offered discounts for the placement of high volume business or broker schemes, which promote a conflict of interest.
The new legislation will enable consumers to take fair decisions on where or what type of business they would prefer to place with whichever player in the industry.
A practical example of how it may change the way insurance operators such as MUA deal with brokers is the new proposed allowable margin of R1 000 per individual per year for the purpose of entertainment.
A positive long term effect on sound corporate governance is expected to be the result and to the benefit of all role players.
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Conflict of Interest
Submitted by Michaela on Wed, 2011-11-02 10:39Image/Video:
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We are moving into the festive time of the year… a time for giving… but do bear in mind that the insurance industry is governed by the Conflict of Interest regulations and the monitoring and reporting of interests, whether financial or immaterial financial interests, are important.
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We are moving into the festive time of the year… a time for giving… but do bear in mind that the insurance industry is governed by the Conflict of Interest regulations and the monitoring and reporting of interests, whether financial or immaterial financial interests, are important.
It is important to be aware that even lunches count as gifts – immaterial financial interest. Whether it is received or given.
Both the recipient and giver of immaterial financial interest have to note and record the immaterial financial interest in their Conflicts of Interest register. The FSB has the authority to do on-site visits to perform checks, which consists of checking both parties’ registers to monitor whether the regulations are adhered to. The FSB have the power to request any proof they might require to verify the records of the register.
When the allowed amount of R 1000 is exceeded, the FSB has to be informed. This system driven monitoring process will ultimately give the FSB the capability to take whatever action is appropriate in respect of entities giving or receiving immaterial financial interest in excess of the legal limit.
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- 111 reads
