One of the key challenges facing the insurance industry must be the sheer volume of regulation and the rapid pace of change.
The Financial Sector Conduct Authority (FSCA) has been active in the first half of this year with a steady stream of draft Conduct standards being published. This raises an important question – is Conduct currently effective in the industry or does Conduct only become effective on the promulgation of the Conduct of Financial Institutions Bill (COFI Bill)?
KPMG’s view is that the Market Conduct requirements is already alive through the various financial sector laws and regulations like the FAIS Act, the Policyholder Protection Rules and various banking regulations and it is almost irrelevant that the COFI Bill has not yet been enacted. We encourage insurers not to wait for the COFI Bill to be fully and finally effected before establishing a Conduct programme and critically not to let implementing Conduct in business be solely regulatory driven.
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