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

Publish date: 11 January 2019
Issue Number: 53
Diary: CompliNEWS
Category: Finance

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.

 

Working Smart

By Lee Rossini

Selecting, recruiting and onboarding a new employee takes time and resources.  Once settled and integrated into the business, employees develop the skills required to carry out the work effectively, they become an important part of the team, they contribute positively to the corporate culture and their institutional memory is deepened.  For these reasons, short-stay employees should be avoided.  The question is how to motivate employees to stay over the long term especially when faced with some of the challenges in the financial advice arena?  Motivation is a force that energises behavior, gives direction to behavior, underlies the tendency to persist, even in the face of one or more obstacles (Warnich, Carrell, Elbert and Hatfield, 2015). 

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