Insurance Act, 2017 (Act No. 18 of 2017)Chapter 10 : Administration of ActPart 2 : Powers and functions of Prudential Authority63. Prudential Standards |
| (1) |
| (a) | The Prudential Authority may prescribe Prudential Standards on any matter that is required or permitted to be prescribed in terms of this Act. |
| (b) | An insurer must comply with prudential standards that apply to that insurer. |
| (2) | The Prudential Authority when making of Prudential Standards, must have regard to— |
| (a) | the objective of this Act; |
| (b) | the interests of policyholders; |
| (c) | international regulatory and supervisory standards, to the extent practicable and with due consideration to the South African context; |
| (d) | developmental, financial inclusion, and transformation objectives; and |
| (e) | the nature, scale and complexity of different kinds or types of insurers and controlling companies. |
| (3) | A Prudential Standard may— |
| (a) | apply to insurers, controlling companies, key persons or significant owners generally; |
| (b) | apply to insurance business or the conducting of insurance business generally; or |
| (c) | be limited in application to particular kinds or types of insurers, controlling companies, key persons or significant owners, or to particular types, or classes or sub-classes of insurance business, which may be defined— |
| (i) | in relation to insurers, insurance groups, key persons or significant owners, either in relation to a category, kind or in any other manner; and |
| (ii) | in relation to insurance groups, either in relation to a category, kind or with reference to the business of the insurance groups or in any other manner. |
| (4) |
| (a) | A Prudential Standard may— |
| (i) | impose requirements for approval by the Prudential Authority in respect of specified matters; or |
| (ii) | be made applicable to existing actions, activities, transactions, policies and appointments. |
| (b) | Where a Prudential Standard is made applicable to existing actions, activities, transactions, policies and appointments, the Prudential Standard must allow for a reasonable period within which the Prudential Standard must be complied with. |
| (5) | A Prudential Standard referred to in section 47(5) with respect to auditing standards and requirements, applies despite any contrary requirement in Regulations or an instrument made under an Act of Parliament. |