IFB responds to BC review of Financial Institutions Act & Credit Union Act
BC requires a statutory review of the Financial Institutions Act (FIA) & Credit Union Incorporation Act (CUIA) every 10 years. To prepare for this review, the government issued an initial consultation paper to gather input from stakeholders on whether certain proposed changes would improve the regulatory framework.
IFB submitted our comments, concentrating on the sections that may affect our members in BC. In summary, we supported a national database to share regulatory information, a mandatory licensing structure for anyone selling insurance products to consumers – including insurance sold incidental to the purchase of another product, removal of the current 25% cap on rebating, and the need for insurance transacted by consumers online to have access to a licensed advisor at any step along the sales process. We emphasized the important role IFB members play in contributing to, and fostering, financial literacy and the need for clarity for advisors when dealing with difficult and complex issues like suspected financial abuse and mental capacity.
The Ministry of Finance will issue a further consultation when it has developed specific proposals to amend the FIA & CUIA. IFB looks forward to contributing our comments again at this stage.
To read our entire response, click here