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General agent obliged to inspect the advisors


Alain Castonguay

March 12, 2018 07:00

Michel Kirouac, James McMahon, Peter Vincent, and Stéphane Rochon | Photo : Réjean Meloche

At the Congress of the insurance and the investment, James McMahon revealed that insurers have begun to require the general agent to look after the inspection of their financial advisors in the insurance industry. Ever seen before, ” he said.

“For mutual funds, it works already like that. In insurance, it is the responsibility of the insurers. Then, they transfer the mandate of the inspection on the back of their intermediaries. We are forced to go to inspect firms “, said the president, Quebec region, Group financial Horizons.

Pierre Vincent, executive vice-president, individual insurance in iA financial Group, emphasized that it is the distributors who are closest advisors and a better understanding of their needs. “On the side of thecanadian Association of insurance companies of persons (CLHIA), we are committed to doing random inspections at independent advisors across Canada. The adviser will not appreciate so much to receive the visit of the 18 insurers in the same year, ” he says.

Impose this inspection mechanism is virtually impossible, since the advisor may decide to transfer their business to another agent-general, points out James McMahon. “The insurer is primarily concerned to protect its reputation. He does not want his name in the newspaper. He doesn’t want a scandal. I don’t want me no more. Then, it is for this reason that it puts pressure on advisers, ” he says. The only way to avoid this extra paperwork is to require the adviser to entrust all his business to the agent-general, he adds.

Stéphane Rochon, president and ceo ofHumania Assurance, notes that changes imposed on advisers by the securities end up victorious in the insurance industry. Everything arises, however, in average seven years after.

“The controller decided that the situation was not manageable. He has imposed it for the common fund. The concentration of the business of the advisor in a law firm, it will be soon, within the next five years. It is inevitable. We are going to it. “The regulator has already sent a lot of signals in this regard to insurers and advisors,” added Mr. Rochon.

Pierre Vincent points out that he wears the hat of the network of your career with its own representatives. Its employees he stressed that the compliance requirements do not appear to be the same as for the independent advisors. Among the 2 000 consultants of IA, many wonder if the existence of these two levels of compliance is fair.

There must be a manager to check if there is a balance between the financial needs of the client and the product offered, stresses Stéphane Rochon. Michel Kirouac, vice-president and general manager of the Group-Cloutier, has said it is also clear that the industry wants to impose this mandate to the general agents.

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