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 […]
Susan Allemang, IFB’s Director of Policy & Regulatory Affairs was recently interviewed by Investment Executive on new anti-money laundering requirements affecting independent life insurance brokers. These increased requirements will place brokers at greater risk of being found to have deficiencies during a Fintrac audit and which, in turn, could lead to financial penalties. To read the article, click here: http://www.investmentexecutive.com/-/insurance-new-rules-for-reps?redirect=%2Fsearch
The Canadian Securities Administrators (CSA) today released status reports on two consultations it held recently. One reviewed the current fee structure associated with mutual fund products and the other was to explore implementing a best interest duty for financial advice provided to retail consumers. The CSA reports it received over 95 written responses to each of these consultations from a variety of industry and consumer groups. In addition, it held various stakeholder sessions to gather more input. It has concluded that the two consultations are sufficiently interconnected that it needs to consider them together not as two separate issues. The CSA says it will publish what, if any, further steps it needs to take in the coming months. The status reports are available on […]
The Minister of Industry announced December 4th that Canada’s new anti-spam law will come into force on July 1, 2014. Under the legislation, consumers will control who can send them a commercial electronic message or business email. Companies will have to identify themselves in their emails and provide consumers with an unsubscribe option. Those who do not comply risk major financial penalties. For companies, messages sent internally or to another business will be permitted, as will emails sent to consumers as part of a product recall, in response to a consumer inquiry or as a result of a referral (under certain conditions). Fundraising activities of registered Canadian charities are exempt from the Act. On January 15, 2015, the sections of the Act related […]
Canadian insurance regulators have announced the launch of a new resource that provides a single resource for anyone wanting to check if an individual or firm has been disciplined. Formerly, this information was only available on each provincial regulator’s website. Now consumers and insurance industry participants can easily check the names of persons and firms disciplined within the insurance industry through the Canadian Insurance Regulators Disciplinary Actions (CIRDA) database. This was a joint initiative of the Canadian Insurance Services Regulatory Organization (CISRO) and the Canadian Council of Insurance Regulators (CCIR). CIRDA can be accessed from the CCIR and CISRO websites or directly at http://decisions.cisro-ocra.com/.