In Circular 69 of 2017, the Council for Medical Schemes (CMS) stipulates that there has been an increase in the maximum amount which can be paid to brokers in terms of Section 65 of the Medical Schemes Act.
The commission which a broker can earn on a medical aid is 3% of contribution (plus VAT) up to a maximum of R90.00 per month (plus VAT).
FSPs are reminded that they must disclose all fees and/or commission to clients in monetary terms. As there are not normally medical aid ‘quotes’, we advise FSPs to ensure that the fee structure is disclosed elsewhere, for example on the Record of Advice.