"financial instrument" has the meaning assigned to it in the Financial Sector Regulation Act;
[Rule 2.1 substituted by rule 6(a) of Notice No. 997, GG 41928, dated 28 September 2018]
| 2.2 |
An insurer must in developing products— |
| (a) |
make use of adequate information on the needs of identified types, kinds or categories of policyholders or members; |
| (b) |
undertake a thorough assessment, by competent persons with the necessary skills, of the main characteristics of a new product, the distribution methods intended to be used in relation to the product and the disclosure documents related thereto in order to ensure that the product, distribution methods and disclosure documents— |
| (i) |
are consistent with the insurer's strategic objectives, business model and risk management approach and applicable rules and regulations: |
| (ii) |
target the types, kinds or categories of policyholders or members for whose needs the product is likely to be appropriate, while mitigating the risk of the product being used by types, kinds or categories of policyholders or members for whom it is likely to be inappropriate: and |
| (iii) |
take into account the fair treatment of customers: |
| (c) |
that are subject to white labelling arrangements, undertake due diligence assessments in respect of the governance, resources and operational capability of the persons with whom the insurer has such arrangements and ensure compliance with paragraph (b) above; and |
| (d) |
that comprise underlying financial instruments or other assets, undertake due diligence assessments in respect of the underlying financial instruments or other assets and ensure compliance with paragraph (b) above. |
| 2.3 |
Before an insurer starts to market, offer or enter into specific policies in respect of a new product, a senior manager of the insurer must in writing approve the product and confirm that the product, distribution methods and disclosure documents meet the principles set out in rule 2.2(b). |
| 2.4 |
Rules 2.2 and 2.3 only apply to the development of any new product as of 1 January 2018 and any material change in design of an existing product. |
[Rule 2.4 substituted by rule 6(b) of Notice No. 997, GG 41928, dated 28 September 2018]
Mandating Procedures of Provinces Act, 2008
