Skills required

1

1.1

Long-term Insurance: Category A

Assistance policies as defined in LT insurance act (but exclude Category B and C).

“assistance policy” means a life policy in respect of which the aggregate of—

(a)  the value of the policy benefits, other than an annuity, to be provided (not taking into account any bonuses to be determined in the discretion of the long-term insurer); and

(b)  the amount of the premium in return for which an annuity is to be provided,

does not exceed R10 000, or another maximum amount prescribed by the Minister; and includes a reinsurance policy in respect of such a policy;

1.2

Short-term Insurance: Personal Lines

Means short-term insurance contract or policies referred to in the Short term Insurance Act, 1998, purchased by juristic persons and natural persons acting otherwise than in a business capacity.

“short-term policy” means an engineering policy, guarantee policy, liability policy, miscellaneous policy, motor policy, accident and health policy, property policy or transportation policy or a contract comprising a combination of any of those policies; and includes a contract whereby any such contract is renewed or varied;

1.3 & 2.1

Long-term Insurance: Category B1

“Long-term Insurance subcategory B1” means disability, health and life policies as defined in section 1(1) of the Long-term Insurance Act, 1998, which provide only risk benefits as contemplated in the Regulations under the Long-term Insurance Act, 1998, but excludes fund policies as defined in section 1(1) of the Long-term Insurance Act, 1998, fund member policies, investment policies as defined in Part 5B of the Regulations under the Long-term Insurance Act, 1998, and policies referred to in the definitions of Long-term Insurance subcategories A, B2 and C.

1.4 & 2.2

Long-term Insurance: Category C

means policies as defined in the Long-term Insurance Act, 1998, excluding fund member policies and retirement annuity policies, and policies issued to and/or in respect of preservation funds but excludes policies mentioned in Long-term Insurance subcategory A and B;

“long-term policy” means an assistance policy, a disability policy, fund policy, health policy, life policy or sinking fund policy, or a contract comprising a combination of any of those policies; and includes a contract whereby any such contract is varied;

1.5 & 2.3

Retail Pension Benefits

means pension fund benefits provided by retirement annuity and/or preservation pension and/or preservation provident funds.

1.6

Short-term Insurance: Commercial Lines

means short-term insurance contracts or policies referred to in the Short-term Insurance Act, 1998 (Act No. 53 of 1998), purchased by juristic persons and natural persons acting in a business capacity.

“short-term policy” means an engineering policy, guarantee policy, liability policy, miscellaneous policy, motor policy, accident and health policy, property policy or transportation policy or a contract comprising a combination of any of those policies; and includes a contract whereby any such contract is renewed or varied;

1.7 & 2.4

Pension Fund Benefits (excluding Retail Pension Benefits)

means financial products contemplated in paragraph (d) (i) of the definition of “financial product” in section 1 (1) of the Act  a benefit provided by-

d( i) a pension fund organisation as defined in section 1 (1 ) of the Pension Funds Act, 1956 (Act No. 24 of 1956), to the members of the organisation by virtue of membership;

1.8 & 2.5

1.9 & 2.6

1.10 & 2.7

1.11 &2.8

1.12 &2.9

1.13 & 2.10

Securities and Instruments: Shares

Securities and Instruments: Money market instruments

Securities and Instruments: Debentures and securitised debt

Securities and Instruments: Warrants, certificates and other instruments acknowledging

Securities and Instruments: Bonds

Securities and Instruments: Derivative instruments excluding warrants

Securities and instruments” referred to in paragraph (a) of the definition of “financial product” in section 1 (1) of the Act.

financial product” means, subject to subsection (2)-

(a)  securities and instruments, including-

(i)  shares in a company other than a “share block company” as defined in the Share Blocks Control Act, 1980 (Act No. 59 of 1980);

(ii)  debentures and securitised debt;

(iii)  any money-market instrument;

(iv)  any warrant, certificate, and other instrument acknowledging, conferring or creating rights to subscribe to, acquire, dispose of, or convert securities and instruments referred to in subparagraphs (i), (ii) and (iii);

(v)  any “securities” as defined in section 1 of the Securities Services Act, 2002;

(2)  For the purposes of this Act a financial product does not include any financial product exempted from the provisions of this Act by the registrar, after consultation with the Advisory Committee, by notice in the Gazette, taking into consideration the extent to which the rendering of financial services in respect of the product is regulated by any other law.

According to the securities service act "securities" -

(a) means -

(i) shares, stocks and depository receipts in public companies and other equivalent equities, other than shares in a share block company as defined in the Share Blocks Control Act, 1980 (Act No. 59 of 1980);
(ii) notes;

(iii) derivative instruments;

(iv) bonds;

(v) debentures;

(vi) participatory interests in a collective investment scheme as defined in the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002), and units or any other form of participation in a foreign collective investment scheme approved by the Registrar of Collective Investment Schemes in terms of section 65 of that Act;

(vii) units or any other form of participation in a collective investment scheme licensed or registered in a foreign country;

(viii) instruments based on an index;

(ix) the securities contemplated in subparagraphs (i) to (viii) that are listed on an external exchange; and

(x) an instrument similar to one or more of the securities contemplated in subparagraphs (i) to (ix) declared by the registrar by notice in the Gazette to be a security for the purposes of this Act;

(xi) rights in the securities referred to in subparagraphs (i) to (x);

(b) excludes -
(i) money market instruments except for the purposes of Chapter IV; and
(ii) any security contemplated in paragraph (a) specified by the registrar by notice in the Gazette;

1.14 & 2.11

Participatory interests in Collective Investment Schemes

A Participatory interests in one or more Collective Investment Schemes

Forex Investment Business

a foreign currency denominated investment instrument, including  a foreign currency deposit”; in section 1 (1) of the Act any combined product containing one or more of the financial products referred to in paragraphs (a) to (h), inclusive”

“any financial product issued by any foreign product supplier and marketed in the Republic and which in nature and character is essentially similar or corresponding to a financial product referred to in paragraphs (a) to (i), inclusive”

a health service benefit provided by a medical scheme as defined in section 1 (1) of the Medical Schemes Act, 1998 (Act No. 131 of 1998);

1.17 & 2.13

Long term deposits

means an amount of money paid by one person to another person subject to an agreement in terms of which--

a) an equal amount or any part thereof will be conditionally or unconditionally repaid, either by the person to whom the money has been so paid or by any other person, with or without a premium, on demand or at specified or unspecified dates or in circumstances agreed to by or on behalf of the person making the payment and the person receiving it; and

b) no interest will be payable on the amount so paid or interest will be payable thereon at specified intervals or otherwise, notwithstanding that such payment is limited to a fixed amount or that a transferable or non-transferable certificate or other instrument providing for the repayment of such amount mutatis mutandis as contemplated in paragraph (a) or for the payment of interest on such amount mutatis mutandis as contemplated in paragraph (b) is issued in respect of such amount; but does not include an amount of money--

i) paid as an advance, or as part payment, in terms of a contract for the sale, letting and hiring or other provision of movable or immovable property or of services, and which is repayable only in the event of--

aa) that property or those services not in fact being sold, let and hired or otherwise provided;

bb) the fulfilment of a resolutive condition forming part of that contract; or

cc) the non-fulfilment of a suspensive condition forming part of that contract;

ii) paid as security for the performance of a contract or as security in respect of any loss which may result from the non-performance of a contract;

iii) without derogating from the provisions of paragraph (ii), paid as security for the delivery up or return of any movable or immovable property, whether in a particular state of repair or otherwise;

iv) paid by a holding company to its subsidiary, or by a subsidiary to its holding company, or by one subsidiary to another subsidiary of the same holding company;

v) paid by a person who, at the time of such payment--

aa) is a close relative of the person to whom such money is paid;

bb) is a director or executive officer of the person to whom such money is paid; or

cc) is a close relative of a director or executive officer of the person to whom such money is paid; vi)      paid by any person to a registered long-term insurer as defined in section 1 of the Long-term Insurance Act, 1998 (Act No. 52 of 1998), as a premium in respect of any kind of policy defined or referred to in the Long-term Insurance Act, 1998, and under which policy that long-term insurer assumes, in return for such premium, such obligation as is described in the Long-term Insurance Act, 1998;

vii) paid to a fund registered or provisionally registered under section 1 of the Pension Funds Act, 1956 (Act No. 24 of 1956), as a contribution, contemplated in section 13A of that Act, by or on behalf of a member of that fund; or

viii) paid to a benefit fund, as defined in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962), as a contribution or a subscription by or on behalf of a member of that fund,

ix) paid by any person to a registered short-term insurer as defined in section 1 of the Short-term Insurance Act, 1998 (Act No. 53 of 1998), as a premium in respect of any kind of policy defined or referred in the Short-term Insurance Act, 1998, and under which policy that short-term insurer assumes, in return for such premium, the obligation described in the Short-term Insurance Act, 1998

1.18 & 2.14

Short term deposits

See above

1.19

Friendly Society Benefits

a friendly society referred to in the Friendly Societies Act, 1956 (Act No. 25 of 1956), to the members of the society by virtue of membership

“friendly society” means -

(a)    any association of persons established for any of the objects specified in section two; or

..... Section 2

a) the relief or maintenance during minority, old age, widowhood, sickness or other infirmity, whether bodily or mental, of members or their husbands, wives, widows, widowers, children or other relatives or dependants;

 (b) the granting of annuities, whether immediate or deferred, to members or to nominees of members, or the endowment of members or nominees of members;

(c)……….

[Para. (c) deleted by s. 31 of Act 43/75]

 (d) the insurance of a sum of money to be paid or other benefit to be provided -

(i) on birth of a member’s child; or

(ii) on the death of a member or any other person mentioned in paragraph (a) or in the form of an endowment insurance on the life of a member or such a person; or

(iii) towards the expenses in connection with the death or funeral of any member or any such person; or

(iv) during a period of confined mourning by a member or such a person;

(b) any business carried on under a scheme or arrangement instituted for any of those objects, and includes any central society referred to in section thirty-nine, whether or not it is liable to provide any benefits mentioned in section two, and any central society, association or business as aforesaid which is or may become liable for any such benefits, whether or not it continues to admit or to collect contributions from members;

Section 39

“affiliated society” means a society which is under the control of a central society and is bound to contribute to a fund administered by such central society;

“central society” means a society which controls two or more affiliated societies liable for the payment of contributions to its funds.

1.20 & 2A.1

Long-term Insurance: Category B2

“Long-term Insurance subcategory B2” means long-term policies as defined in section 1 of the Long-term Insurance Act, 1998, which are-

(a) investment policies as defined in Part 5B of the Regulations under the Long-term Insurance Act, 1998, which guarantee a minimum return of any premium paid at a specified future date or dates, and where such minimum is ascertainable in Rand terms at inception;

(b) disability, health and life policies that provide risk benefits as contemplated in the Regulations under the Long-term Insurance Act, 1998,and have a guaranteed investment value or a materially equivalent value;

(c) annuities which guarantee a minimum annuity for the term of the policy which annuity is ascertainable in Rand terms at inception; or

(d) any policy which combines the policy features included in paragraphs (a) to (c), but excludes fund policies, fund member policies and policies referred to in the definitions of Long-term Insurance subcategories A, B1 and C.”