Due to regulatory requirements, the following changes are being implemented:
Financial Intelligence Centre Act, 2001 and the Financial Intelligence Act, 2017
In order to meet the regulatory compliance requirements, Sanlam is obligated to perform due diligence on all parties in response to anti-money laundering, countering of financing of terrorism, anti-bribery and corruption and anti-tax avoidance.
The due diligence will be performed at on-boarding, during certain party interactions, during party maintenance and at party exit.
The new Policy Protection Rules
Our previous newsletter featured an article by Michele Jennings regarding the unintended consequences of the new Policyholder Protection Rules.
In summary, legislative changes to the Policyholder Protection Rules (PPR’s) came into effect on 1 January 2018, which require Group Risk insurers to play a much more engaging role in delivering better customer outcomes and by placing a duty on insurers to monitor the execution of and compliance with the various provisions of the PPR’s.
One of the more onerous requirements is the emphasis on ensuring that individual employees and fund members are given clear information and are kept appropriately informed during all stages of the product life cycle, which must be carried out in addition to keeping the policyholder informed (i.e. employer or retirement fund), thereby ensuring fair treatment of customers.
Sanlam is implementing the PPR requirements in collaboration with all stakeholders, which includes intermediaries and front offices, to ensure they are implemented in the most efficient and cost effective manner, and due regard is given to the respective roles of the stakeholders.