The Financial Services Board (FSB) has issued a Frequently Asked Questions (FAQs) document to assist insurers to implement and comply with the Demarcation Regulations.
The FAQs are grouped into 8 categories:
- Implications of the 1 April 2017 effective date of the Demarcation Regulations
- Product descriptions (regulation 7.2)
- Underwriting (regulation 7.3(2)-(4))
- Waiting periods, variation and termination of contract (regulation 7.3 (5) – (11))
- Commission (regulations 3.4(1a)(LTIA) and 5.3(1)(b)(STIA))
- Reporting requirements (regulation 7.6)
- Transitional arrangements (regulation 7.7)
The questions and answers in each of these categories were formulated by the FSB to provide insurers with an understanding of the Regulations and how these should be practically implemented. Although this document is aimed at insurers, it is also relevant to FSPs that offer financial products subject to the Demarcation Regulations. The FAQs document can help these FSPs understand the requirements more clearly and the impact it has on their business and on their clients.