95 | Corporate governance report PPS Integrated Report 2021 The proposed changes are consistent with the objective of the FSR Act, 2017, and specifically the mandate of the FSCA to protect financial customers by promoting the fair treatment of financial customers by financial institutions. It comprehensively aligns with the strategic priorities of the FSCA, facilitating the development and maintenance of a robust regulatory framework that promotes fair customer treatment. In its essence, the proposed changes and enhancements are proposed to better protect financial customers. It is envisaged that these proposed amendments will have a positive impact on the governance and oversight of product development by insurers and the distribution of insurance products. It is further believed that these amendments will enhance the protection of customers through more targeted disclosures around excess structures (in the nonlife insurance space), bundled products, and loyalty benefits, which have all in the past proven to be complex and not well understood by policyholders. It will also ensure closer alignment between the Short-Term Insurance and Long-Term Insurance and make necessary corrections to the legislation while filling gaps identified over the past three (3) years since the replacement of the 2004 PPRs with the 2017 PPRs. This will ultimately ensure a stronger and less fragmented regulatory framework for the conduct of the business of insurers, and lead to better outcomes for policyholders. PPS has submitted its comment via ASISA. 4. PROTECTION OF PERSONAL INFORMATION Certain sections of the Protection of Personal Information Act 4 of 2013 (POPIA) have taken effect 1 July 2020 and 30 June 2021, respectively. The Act has been put into operation incrementally, with several sections of the Act having been implemented in April 2014. The sections which commenced on 1 July 2020 and 30 June 2021 are essential parts of the Act and comprise sections which pertain to, among others, the conditions for the lawful processing of personal information; the regulation of the processing of special personal information; Codes of Conduct issued by the Information Regulator; procedures for dealing with complaints; provisions regulating direct marketing by means of unsolicited electronic communication, and general enforcement of the Act. PPS implemented the requirements of POPIA through a group wide project and the implementation was reviewed by external assurance providers to identify opportunities where PPS could mature in its compliance with POPIA. 5. DRAFT PROMOTION OF EQUALITY AND PREVENTION OF UNFAIR DISCRIMINATION BILL Comments were invited on the draft Promotion of Equality and Prevention of Unfair Discrimination Bill 2021. The purpose of the Bill is to address certain problems that have been identified with the Promotion of Equality and Prevention of Unfair Discrimination Act 4 of 2000. The impact of the Bill is high as it widens the definition of discrimination to include unintentional discrimination. The definition of equality now includes the equal right to access to resources, opportunities, benefits and advantages. An unintentional discriminatory act or omission could lead to a contravention if the amendments are passed. Prohibition of retaliation against a person objecting or starting proceedings in terms of the Act will require that PPS takes appropriate action to defend itself. 6. COMPANIES ACT AMENDMENT BILL A draft Companies Act Amendment Bill was issued for public comment. The Bill seeks to amend the Companies Act, 2008 by, among others, requiring the disclosure of wage differentials in companies and enhancing transparency in ownership of companies’ shares and financial records. The Social and Ethics Committee’s members will have to be elected every year at PPS’ AGM and the Committee will have to prepare a formal report and present it to shareholders at each AGM. The financial assistance requirements in section 45 of the Act will no longer apply to financial assistance between PPS and its subsidiaries. It will be an offence if a director or a prescribed officer does not act reasonably when a party requests information it is entitled to and it is then not provided to that party.
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