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Binder Agreement Fee

Binder Agreement Fee

While these new PPR and Binder rules may seem burdensome and will certainly require much more work from insurers and intermediaries, it is important to remember that we work together for the good of our mutual customers. What struck me in the process leading up to the changes was how the FIA, which represents intermediaries, and the South African Insurance Association (SAIA), which represents insurers, reached a consensus before making our presentations to the regulator. We presented a united front and proved that we were all on the same side. In addition to binder rules, the new fit and Proper Regulations introduce operational requirements for FSPs that would outsource. The person to whom the function is outsourced must be able and, if necessary, empowered. The PSP must have metrics in place to assess the performance standards for outsourced delivery. Until the entry into force of the new law on January 1, 2018, you only had to notify the FSB of material file contracts or terminations. You didn`t need to report all the files, which meant a lot of people got away with a lot of things. That has changed. If you are a case holder and you are not registered to give advice on your FAIS license and you do not manage the policies provided by a broker related to your business, the caps do not apply and the current rules remain in effect, i.e. .

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