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Member’s notice | FICA – Short-term insurance as an accountable institution

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Barry Taylor, chair: short term exco, and Peter Atkinson, national technical portfolio manager, attended a meeting at the Financial Intelligence Centre (FIC) on 7 June 2018. The FIC is South Africa’s national centre for the receipt of financial data, analysis and dissemination of financial intelligence to the competent authorities.

In the below, Barry shares a summary of the minutes discussed at the meeting: 

Peter Atkinson and I attended a meeting at the FIC on the 7th June 2018 attended by, various senior FIC executives, headed by Pieter Smit, SARB FICA executive, Jo-Anne Ferreira and Kerwin Martin (PA), Nico Esterhuizen, Themba Palagangwe and Easvarie Naidoo (SAIA).

In essence it was noted that the short-term industry did not support the proposal to classify the industry as “Accountable Institutions” but agreed that a more practicable solution could be found in order to satisfy the concerns of the FIC and that the industry was prepared to work alongside the FIC, PA and SARB in order to understand what the FIC’s concerns are and to then conduct an assessment to determine the concentration of risks and the proportionate benefits or down sides.

We agreed to form a representative work group to take further.

Pieter Smit concluded by confirming that in view of the content and outcome of the meeting the heat was off this particular issue and that a thorough study should be done and not at the expense of restrictive time deadlines. They will now proceed with concluding their recommendations on other FIC matters for presentation to the Minister excluding this issue.

Regards

Barry