Funding Friends Ltd’s Post

🚨 Important Compliance Insight for South African Insurers 🚨 In researching how insurers get into difficulty, I keep stumbling on situations where insurers have faced penalties for not obtaining the required approval for intra-group loans and financial assistance. There’s a complex interaction between Section 38 of the Insurance Act and Section 45 of the Companies Act that many insurers overlook. Here’s the key: Section 38(1)(e) of the Insurance Act requires insurers to seek prior approval from the Prudential Authority (PA) for certain transactions with related parties, including loans and financial assistance. Section 38 references Section 45 of the Companies Act, which governs loans and financial assistance not just to directors, but also to related companies. The reference in the Insurance Act may be misleading, as Section 45 covers much more than just loans to directors. 💡 Why does this matter? Failure to obtain approval for intra-group transactions has led to penalties for some insurers. The link between the two pieces of legislation means that intra-group financial assistance needs to be vetted with the PA. 🔑 Practical Takeaways: 1 - Intra-group Loans Are Valuable: These loans are essential for effective cash management and treasury operations within a group structure. They’re not inherently problematic—it's about managing them in a compliant and controlled way. 2 - Approval Process: Requiring approval for every change in an intra-group loan would be cumbersome and impractical. Instead, it’s a good practice to seek approval for a reasonable range of intra-group loans, supported by strong governance frameworks. This ensures compliance without slowing down operations. 3 - Documentation and Transparency: As with any financial transaction, ensuring that terms are clear and well-documented is essential for compliance and smooth operations. 4 - Governance is Key: Beyond seeking approval, robust internal governance around these transactions is critical to maintain solvency and ensure that the insurer remains in line with regulatory expectations. 📌 Note: This post is based on my experiences as an actuary and isn’t meant to be legal advice. For specific guidance, always consult your compliance experts. #Insurance #RegulatoryCompliance #PrudentialAuthority #IntraGroupLoans #RiskManagement #Actuarial

With less than 12 months before FAR compliance day for insurers and RSEs, read our key insights on implemention planning with practical examples and suggestions for wherever you are in your project. We focus on drafting accountability statements, reviewing governance structures to determine any overseas application and discussions with directors. Look out for the next instalment!

The Financial Accountability Regime (FAR) is now firmly on the horizon for insurers and RSEs in Australia. While most entities are well underway with their implementation planning, we know from our experience of equivalent regimes that compliance with the black letter law is only half of the battle. In Part 1 of our three part series, this article outlines some key messages for organisations as the 12-month countdown begins. Read the full insight by Avryl Lattin Matt Ellis Liam Hennessy Isabella Jones and Crystal Sanders here 👉 https://lnkd.in/gEg7uXXM #financialaccountabilityregime #corporate #insurance #regulation

Since introducing new rules the FCA have been persistent in requesting higher levels of due diligence and ongoing oversight of Appointed Representatives (ARs) by their Principal firms, who are responsible for ensuring compliance. This was in response to high levels of complaints and supervisory cases against Principals of ARs. In this article, we consider the key points raised by the FCA, and while they relate specifically to the Credit Broking sector, it is clear that these can be read across to other sectors and firms should consider how it relates to their own arrangements, to understand where FCA scrutiny may come in the future. Find out more: https://bit.ly/3yrJh2u #dwf #uk #FCA #financialservices #compliance #regulatory

Unlocking the Power of Trade Credit Insurance (TCI) One under-the-radar tool that’s quietly transforming the world of finance? Trade Credit Insurance (TCI). It’s something not many discuss, but it plays a crucial role in safeguarding businesses in today’s volatile markets. So, what’s TCI? It’s insurance that protects a company against its customers' inability to pay for goods or services. Think of it as an added layer of protection for businesses that extend credit to customers, allowing them to manage cash flow risks while still growing. But here’s the kicker: beyond just protecting against defaults, companies that leverage TCI can actually access better financing terms with banks. Why? Because insured receivables are seen as less risky, allowing banks to lend more freely against them. As global markets continue to evolve, this kind of financial tool can offer businesses a competitive edge, especially when entering new markets or expanding credit terms. The next time you think about risk management, consider how TCI can help unlock growth in ways you might not expect!

5 reasons meticulous billing management is vital for an insurance agency: 🪙 Client Trust: Accurate billing builds trust with clients, demonstrating reliability and transparency in financial transactions. 🪙 Compliance: Ensuring accurate billing helps the agency stay compliant with regulatory requirements, reducing the risk of legal issues. 🪙 Financial Stability: Proper billing management ensures timely premium collection, contributing to the agency's financial stability and ability to cover claims. 🪙 Risk Management: Identifying and addressing billing discrepancies early minimizes financial risks for the agency and its clients. 🪙 Efficient Operations: Streamlined billing processes increase operational efficiency, allowing staff to focus on providing excellent customer service and essential tasks. #BillingAccuracy #ClientTrust #CompliantBilling #FinancialStability

China unofficially instructs large state-owned companies to drop PwC as auditor, with more than 30 China-listed companies including Bank of China, PICC, China Taiping Insurance & China Cinda Asset Management have switched auditors.  Read - https://lnkd.in/gEtuhxnV follow Caproasia | Driving the future of Asia China had unofficially instructed large state-owned companies to drop PwC as auditor, with more than 30 China-listed companies including Bank of China, PICC, China Taiping Insurance & China Cinda Asset Management have switched auditors.  Earlier in August 2024, China Evergrande liquidators have filed audit negligence & misrepresentation lawsuits against PwC & PwC Zhong Tian (PwC China unit), lawsuit on valuation reports against CBRE & Avista Valuation Advisory, alongside actions to recover $6 billion in dividends & remuneration from 7 defendants including China Evergrande founder Hui Ka Yan, ex-wife Ding Yumei, ex-CEO Xia Haijun & ex-CFO Pan Darong.  

Advisors that aren't expanding their service offering will face margin compression. Wealth Advisor Growth Network can help your firm provide life, P&C, lending, trust, tax overlay/Direct indexing, valuation and M&A without relying on your existing staff. Clients will expect more than money management and light planning in the near future. Don't get left behind. #wealthmanagement #Fiduciary #breakaway #RIA

#FinancialDirectorsInterviewSeries: “The financial services regulatory landscape continues to evolve at pace and naturally the consequences of not being reactive to new regulations can be severe.” Read our exclusive interview with the CEO of Davies - Consulting Division, Pino Vallejo. #Consulting #RiskManagement #Finance