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.
November is Financial Literacy Month in Canada, and to encourage investors to better understand investing in mutual funds, the Canadian Securities Administrators (CSA) has released a free, interactive version of a sample Fund Facts document. Taking this self-guided tour will help investors learn how to identify a fund’s principal investment, past performance, risk rating and cost. Fund Facts are written in plain language and are intended to make it easier for investors to understand the key features of the fund and to compare various funds. Under current rules, investors must receive the Fund Fact for their mutual fund, within 2 days of a purchase, although they are readily available to the public before then on each fund company’s website or through your advisor. To […]
Press Release: 16 October 2014 (Wilton, Connecticut) Today, the board of directors of Wilton Re Ltd (“Wilton Re”) announced the execution of definitive agreements to acquire the majority of the Aegon N.V. operations in Canada for C$600 million, consisting of Transamerica Life Canada, Canadian Premier Life, Legacy General Insurance Company, Aegon Capital Management, Aegon Fund Management, CRI Canada and Selient, Inc. (“Transamerica Canada Business”). Wilton Re will fund the transaction with additional equity capital provided by its parent, Canada Pension Plan Investment Board. Chris Stroup, Chairman and CEO of Wilton Re, said, “We are delighted to work on this important transaction with Aegon. Wilton Re views the acquisition of the Transamerica Canada businesses as well-aligned with our strategy to provide […]
The Financial Services Commission of Ontario (FSCO) released its findings from a study it conducted with 1300 randomly selected life insurance agents licensed in Ontario. The study was primarily an information gathering exercise where selected agents were required to complete a questionnaire on the practices they employ to determine if a product or recommendation is suitable for clients. While the results were positive in many respects, some shortcomings in sales practices were noted. IFB has communicated with members reminding them of the importance of compliance with regulatory requirements, and in particular, providing clients with written conflict of interest disclosure. IFB members will find more information in the Member section of the IFB website: www.ifbc.ca. Next steps: In its September e-newsletter, […]
In July 2014, the MFDA published a “Discussion Paper on the use of Investor Questionnaires” to help with the KYC process, including a sample investor questionnaire to guide and document this discussion with clients. Use of the questionnaire is not mandatory and your dealer may have adopted a different or similar questionnaire. The MFDA notes: The know-your-client (“KYC”) process is one of the most fundamental obligations under securities legislation and one of the most important elements of investor protection. However, the process can be challenging for both clients and Approved Persons. Investors may not always understand the industry terminology used on KYC forms and research reveals that many investors do not understand the relationship between risk and return. Approved Persons […]