The Financial Sector Conduct Authority has increased the maximum penalty it can impose for not submitting returns, documents, or information timeously, in terms of the Long-term Insurance Act (LTIA) or the Short-term Insurance Act (STIA).
The increase is contained in Notice 5885 in Government Gazette No. 52151 of 21 February 2025.
From the date of publication, the Authority can impose a penalty of up to R8 576 a day, an increase of 4.39% from the previous maximum penalty of R8 215 a day (per Notice 4044 and 4045 of 23 February 2024).
The penalty is provided for in section 68(1) of the LTIA and 66(1) of the STIA. The wording of both sections is identical.
(a) A person who fails to furnish the Authority with a return, information or document, as provided by this Act, within the specified period or the period determined by the Authority by notice on the official website, or any extension thereof, shall, irrespective of any criminal proceedings instituted against the person under this Act, be liable to a penalty not exceeding R5 000 for every day during which the failure continues, unless the Authority, on good cause shown, waives the penalty or any part thereof.
(b) The amount referred to in paragraph (a) must be adjusted by the Authority annually in order to reflect the Consumer Price Index, as published by Statistics South Africa.
