Low income insurance, investment product remuneration policy consultations begin; comments by 15 February 2019

The Financial Services Conduct Authority (FSCA) has released a paper aimed at eliciting stakeholder input on outstanding issues requiring attention in developing a policy position on ‘a specific remuneration dispensation’ for the suppliers of life insurance and investment products to low income consumers. Once finalised, the policy is expected to strike a balance between encouraging intermediaries to provide advice on investment products for the low-income market and ensuring that these products are appropriate to the needs of the consumers concerned. Subordinate legislation is likely to follow, reports CompliNEWS contributor Pam Saxby.

The paper is underpinned by microinsurance and funeral policy product standards introduced through amendments to long- and short-term policy holder protection rules in place since last September. It also takes account of a related remuneration dispensation introduced through amendments to regulations under the 1998 statutes concerned. The paper is underpinned by government’s ongoing commitment to financial inclusion and financial sector transformation – and to facilitating the distribution of financial products in ways that support the delivery of fair customer outcomes. Interested and affected parties have until 15 February 2019 to comment.