Life companies in South Africa could “run into trouble” if they do not start working on changes to their businesses soon, said a senior figure for Old Mutual, ahead of the country’s imminent Retail Distribution Review. The reforms will replace commission payments with fees for advice, similar to legislation introduced under the RDR in the UK. The first phase is expected to land early next year. There are 55 proposals listed as part of South Africa’s version of RDR, some of which are in the early stages. The new rules will make it clear which advisers are independent or ‘tied’ to product providers.
[Source: International Adviser - October 2015 - by Katherine Denham]