Subject Title - INSETA

Financial interestA provider or its representative may only receive or offer the followingfinancial interest:Commission or fees authorised under the Long-term Insurance Act,the Short-term Insurance Act or the Medical Schemes ActOther fees if those fees:– are agreed by client in writing and– may be stopped by client.Fees, remuneration for service to third party if reasonable to serviceAn immaterial financial interest subject to other lawsAnother financial interest for which a fair value was given/paymentmade by that provider or Representative when received.Important notes:The above provisions do not apply to FSPs who are in the same legal entity.This section is effective from 19 October 2010.What can't be done by the provider?A provider may not offer any financial interest to a representative of aprovider for: giving preference to the quantity of business secured for the providerto the exclusion of quality of service rendered to clients. giving preference to a specific product supplier, where arepresentative many recommend more than one product. giving preference to a specific product of a product supplier, where arepresentative may recommend more than one product.Important note:The above provisions are effective from 19 April 2011.The provisions of this section apply to all FSPs and representatives,regardless of whether or not they are part of the same legal entity.What must be disclosed?A provider/rep, must, at the first reasonable opportunity disclose, in writing,to a client any conflict of interest in respect of that client – including:© INSETA - Section 1 12a 147