We would like to share an update on the key priorities currently underway at the FIA. From regulatory engagement and policy advocacy, to strengthening member value and operational efficiency, our focus remains on protecting and advancing member interests.
Lobbying & Advocacy:
OMNI-CBR: Due to the extensive efforts by the FIA and broader industry consultation, the OMNI-CBRs have been discontinued providing relief for FSPs. The FIA submitted detailed feedback on the draft OMNI-CBR published in June 2022. Our submission highlighted key concerns such as the disproportionate burden on smaller businesses, inappropriate terminology and structure, excessive reporting frequency, and the economic impact this will have on FSPs.
Conduct of Financial Institutions (COFI) Bill: The COFI Transition Working Group has been established, on which the FIA has two representatives. These early engagements are critical, as they allow subject matter experts to share practical insights to help shape the regulatory frameworks before broader industry consultation begins. This approach is integral to the FIA’s lobbying and advocacy strategy.
Employment Equity Amendment Regulations: The FIA has met with the Minister of Employment and Labour on the 23rd of May and then again on the 20th of June, including delegates from the Department of Labour (DOL) on numerous occasions this year, to discuss our proposal to consider sub-sector targets for intermediaries. These 5-year targets which become effective in September 2025 pose significant risk to members who employ more than 50 staff. The fines are up to 10% of annual turnover if these targets are not met. While the final Regulations have been published, we continue to lobby as a sub-sector through Business Unity South Africa to ensure our proposals are duly considered, alternatively legal action may be considered.
National Health Insurance (NHI): In addition to the FIA’s representation at the public hearings, as well as an extensive submission on how we can support universal healthcare in South Africa, the FIA made a further submission on the 6th of June, on the NHI Regulations that provide for the establishment of the structures and processes for the governance of the Fund.
FATF Grey-listing: The FIA recently hosted a national webinar for members – “Coffee with Sam & Brad” where the regulator was invited as a guest to share their expectations and findings on the implementation of RMCPs by FSPs to support the country’s plan to exit the grey list. The FSCA confirmed they will be undertaking 100 inspections this year. 470+ members were in attendance and this session was accredited for CPD. To access these insights, please visit the FIA YouTube channel.
Cover Subjectivity / Grid Failure Exclusions: We followed up with the FSCA on the 17th of June. We are pleased to advise that the FSCA are in engagements with the Competition Commission for a non-binding legal opinion, unfortunately they cannot control the timelines as to when the opinion will be finalised.
Extension of Demarcation Exemption Renewal Framework: Following ongoing engagement with the Council for Medical Schemes (CMS), the CMS has advised stakeholders that the Exemption Renewal Framework for insurers conducting the business of a medical scheme will now be in effect until 31 March 2027. The FIA continues to participate on the working group hosted by the CMS.
National Treasury Engagement – Review of Demarcation Product Premium Bands: The commission bands have not been reviewed in years! The FIA met with National Treasury on the 27th of February and again in May, to provide them with legislative clarity to support the proposal for the Minister to review the commission bands. We await feedback from National Treasury.
The Financial Sector Transformation Council (FSTC): The FIA has been actively involved in the recruitment process of the new CEO. We have also been working closely with constituencies on the Transformation Fund and other developments relating to the Financial Sector Codes.
The Financial Inclusion Forum: National Treasury believes that economic growth can be unlocked by expanding financial inclusion. To that end NT is in the process of developing a National Financial Inclusion Strategy. The FIA is represented on 3 of the 5 workstreams to manage the impact on our members.
Other Priorities:
CPD: The FIA now offers more than 80 hours of complimentary CPD through our online CPD platform. In addition, we offer a range of national technical webinars across all five disciplines where key industry matters are discussed. Since January, the total number of CPD certificates issued exceeds 7000 hours.
Career Path for Advisers: The FIA has been working with the EXCOs to develop a career path document for members. Substantial input was provided by members during March and April, and a final draft should be submitted to the Training and Education Exco in August.
MemberShield: The FIA launched a marketing campaign in April to raise awareness with members about this new offering exclusive to members. MemberShield not only addresses evolving cybersecurity regulations, but aligns with assessment areas for Financial Services Providers, conducted by, for example, insurers. The package strategically addresses key assessments relevant to the financial industry, ensuring FIA members meet critical cybersecurity standards.
FIA Advice Summit: Preparations are underway to bring the industry a leading conference which is based on “unscripted conversations”. This year the agenda offers thought provoking topics that stand out from the usual discussions, offering new perspectives. Please book your tickets ASAP as we are capped at 500 attendees and currently 300 tickets have been sold already.
Assisting members in developing similar Academy pathways to the sector: It was proposed at the Transformation Exco in May that the FIA should assist all members in developing Academy pathways to the sector as without these training academies from different members, the industry would not achieve the required transformation target of black brokers within the next five years. The committee agreed that the FIA should develop a guideline document on how FSPs can implement adviser development programs, drawing on learnings from members.
As we navigate the environment, our focus remains on delivering value, advocating for your interests, and strengthening the foundations of the intermediary sub-sector and broader industry. Your continued support, insights, and engagement are vital to our collective success. Thank you for your partnership and look forward to the progress we will achieve together in the months ahead.
