MONDAY, 11.00AM
THE Financial Services Board is to intensify investigations into the increasing number of unregistered long-term life assurers who are operating in SA illegally.
FSB and Registrar of Insurance executive officer Rick Cottrell said on Friday the board had received numerous complaints since the July relaxation of exchange control regulations of unregistered life assurers conducting business in SA. On Friday the FSB issued a public warning for consumers to be cautious of illegal life assurers.
The Insurance Act obliges all life assurance companies to register with the FSB before they can conduct their businesses lawfully. Said Cottrell: “Persons who induce or attempt to induce others to enter into an insurance contract with an insurer which is not registered as an insurer with the FSB are operating illegally.”
The Financial Institutions Amendment Act, which is about to be signed into law, will give the FSB increased civil powers “which will expedite and enhance the effectiveness of the enforcement procedures”.