Thursday, 28 March, 2024
HomeMedico-LegalMedical scheme investment policy restriction lifted

Medical scheme investment policy restriction lifted

Long-term insurers offering investment policies to medical schemes are now exempt from sub-regulation 4.2(1) of the 1998 Long-term Insurance Act – along with any intermediary acting between a long-term insurer and medical scheme regarding an investment policy. This, reports Legalbrief Policy Watch, was announced in a Financial Sector Conduct Authority notice published yesterday.

The exemption addresses the potentially unintended, negative implications for the liquidity of medical schemes of discrepancies in 1998 Medical Schemes Act and 2017 Insurance Act definitions of the term “fund”.

The authority’s proposals for the exemption now in place were released in April for comment. At the time, it was envisaged that the exemption would be an interim measure pending amendments to the regulations.

It may be on that basis that the new exemption is subject to amendment or withdrawal by notice published on the Financial Sector Conduct Authority website.

 

[link url="https://legalbrief.co.za/diary/legalbrief-today/policy-watch/finance-medical-scheme-investment-policy-restriction-lifted/#redirect"]Full Legalbrief Policy Watch report[/link]

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