Regulatory Update: Second half of 2025

As we move into the second half of 2025, it's essential to stay informed and agile in the face of evolving regulatory expectations in South Africa’s insurance sector. While there have been no major legislative changes announced recently, and yes, we still await COFI, several trends and compliance priorities continue to shape the environment for brokers and intermediaries.

Key Focus Areas for Brokers

1. Treating Customers Fairly (TCF)

The FSCA continues to emphasize TCF principles. Brokers should ensure that:

• Product disclosures are clear and accessible.
• Advice is tailored to clients’ needs and financial circumstances.
• Complaints are handled promptly and fairly.

2. Regulatory Reporting & Fit and Proper Requirements

Ensure all representatives meet ongoing CPD (Continuous Professional Development) requirements and that your FSP’s compliance reports are up to date.

• Remember that the CPD cycle for all representatives and key individuals has just ended, 31 May 2025. If CPD has not been completed, those representatives or KI’s will no longer be fit and proper and hence not compliant. Please check!

3. Digital Transformation & Data Protection

With the rise of digital platforms, brokers must:

• Comply with POPIA (Protection of Personal Information Act).
• Secure client data and ensure consent protocols are in place.
• Use digital tools responsibly in marketing and client engagement.

4. Climate Risk & ESG Considerations

ü Insurers and brokers are increasingly expected to understand and disclose climate-related risks. Stay informed on how ESG (Environmental, Social, and Governance) factors may influence underwriting and advisory practices.

What You Can Do Now

• Review your compliance calendar and CPD progress.
• Audit your client communication and data handling practices.
• Stay connected with updates from the FSCA and SAIA.

We’ll continue to monitor the regulatory landscape and share updates as they become available.