Update on the FAIS AMENDMENT ACT Section 13(1)(c)

We bring you an important update on the FAIS AMENDMENT ACT Section 13(1)(c).

A decision was made that all product suppliers will be approved to offer their products to our dealer base.

We have concluded several meetings with insurers/product providers and we are in an advanced stage of negotiations to conclude the intermediary agreements. Amongst these are: Infinity, Impac, Oakhurst, Innovations, Auto & General, Hollard, Motor VAPS, Guardrisk, Pinnafrica, Traficc, Regent and Genric. Meetings have also been set up with finance houses supplying products under their own insurance licences.

As previously stated, if you are dealing with a product supplier and you are aware of the fact that we, as your FSP, have not entered into negotiations with them as yet, please request your product provider to make contact with Len van Wyk at the IDA.

Please note that in the absence of a final Guidance Note from the FSB, we will proceed and will have all the agreements in place before the end of June 2015. It is important to note that you will not be allowed to collect Short Term Insurance premiums and that you will have to make use of a Split Premium facility, such as the Debella Split Premium Process.

An amended mandatory agreement will have to be entered into and we will provide you with this document timeously.

In the meantime, it is business as usual and if you have any questions, please feel free to contact our offices or your local IDA representative.

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