The results of a “mystery shop” exercise for investment advice were made public yesterday. The Ontario Securities Commission (OSC), Investment Industry Regulatory Organization of Canada (IIROC), and Mutual Fund Dealers Association of Canada (MFDA) released a joint report on the exercise, which was carried out by a market research firm. Researchers posed as prospective clients and recorded their experiences when conversing with financial advisors. The interactions took place in a number of advisory firms across Ontario between July and November 2014. The research is the first of its kind undertaken by Canadian securities regulators. Among the key findings, the report shows that it is often difficult for investors to decide whether or not they have received appropriate guidance, and that […]
In a news conference held today, Ontario Premier Kathleen Wynne unveiled more details on the Ontario Registered Pension Plan (ORPP), and which pension plans will be considered “comparable”, making them exempt from participation. The ORPP will be phased in over six years to allow businesses to adapt or bring their current pension arrangements in line with the ORPP. Employers without a registered pension plan will be phased in beginning in 2017. Large employers with over 500 employees will be first, employers with 50-500 employees will begin participating in 2018, and in 2019, small employers with less than 50 employees will be required to participate. Self employed people (subject to changes being made to the federal Income Tax Act) would begin […]
Insurance regulators are taking a closer look at the sales of mortgage insurance, creditor’s insurance and other “incidental” insurance products. The new examination efforts come amid concerns that the individuals selling these policies aren’t qualified, and in many cases, aren’t licensed to sell insurance at all. Insurance agents have welcomed the regulatory changes, as they will offer better protection for consumers while also leveling the playing field in the distribution of insurance products. IFB also welcomes the decision of regulators to address this issue. We feel it’s unfair that individuals who are not subject to the same requirements and oversight of licensed representatives can sell insurance products. Read more about the issue and our stance in this article from Investment […]
Expect the Unexpected: Older Canadians Share Their Financial Lessons OSC Releases Key Findings on Investor Protection for Seniors TORONTO – Today the Ontario Securities Commission released The Financial Life Stages of Older Canadians, a targeted research study on seniors’ financial needs and challenges. The research found that almost six out of 10 older Canadians experienced a major life event that challenged their prior financial plans (such as a loss of investments or income) and that fraud impacts approximately 60 out of every 1,000 older Canadians. Based on online survey interviews with 1532 Canadians aged 50 and over, this report delivers on a commitment in the OSC’s Statement of Priorities to be more responsive to senior investors. The report also builds on previous […]
The MFDA has published a Bulletin to address questions from mutual fund dealers on implementing the client reporting requirements under CRM2. The Bulletin contains a series of “Questions and Answers” to help firms with the disclosure, performance reporting and account statement information required under CRM2. For more information and to read the Bulletin click here, or go to the MFDA website: www.mfda.ca.
Sellers of incidental insurance in Manitoba will have to be licensed as of June 1, 2015. “Incidental insurance” is insurance sold to consumers, alongside another product, for example, creditor life and disability insurance sold through banks and credit unions, in conjunction with securing a mortgage or loan. IFB has long taken the position that sellers of such insurance should be licensed and subject to a regulatory regime for the protection of the consumer. IFB is pleased that Manitoba joins Saskatchewan and Alberta in requiring sellers to hold a Restricted Insurance Agent licence. The Insurance Council is accepting applications now, and suggests applicants apply before April 30th to ensure their license is issued by the June 1st deadline. Licences will need to […]
The sale of syndicated mortgages by mutual fund advisors who are also mortgage brokers has created some confusion. In hopes of clarifying the situation, the MFDA and FSCO (which regulates dealing or trading in mortgages) have issued a joint statement about the compliance issues. To read the bulletin, click here.
The Financial Services Commission of Ontario (FSCO) has released a bulletin to remind life insurance agents of their responsibilities when recommending life insurance and insurance-related investment products and strategies to clients. To help identify risks and ensure suitability, FSCO outlines a number of guidelines that life insurance agents should be aware of. See all of those guidelines in the bulletin. Click here to read the full bulletin.