27 June 2019 13:30
Photo : Freepik
Thefinancial markets Authority has outlined the initiatives it will undertake during the 2019-2020 fiscal year, a first for the organization, which says it wants to repeat the exercise annually. The adaptation to the new provisions entered into force since the adoption of bill 141 is part of the priorities of the Authority.
The regulator indicates that it intends to conduct a consultation in order to adopt a regulatory framework that will outline the new legislation in the sector of damage insurance brokerage. The specific provisions that will be the subject of the consultation have not been disclosed.
The Act aimed primarily to improve the supervision of the financial sector, the protection of deposits of money and the regime of functioning of the financial institutions act (bill 141), passed in June 2018, and several of whose provisions came into force, reforming the damage insurance brokerage. This requires including obtaining contracts with three insurers financial groups that are different to what a brokerage firm can be defined as such.
Some of the actions surrounding the disclosure of the business relationships of the brokerage firms have already entered into force on 13 June last, while others will be applicable in December.
Consultation and balance sheet
The regulator also intends to conduct a consultation on the harmonisation of the supervision of the sectors of the mutual funds and segregated funds. The canadian Council of regulators of insurance (CCIR) recommends that the Model of client relationship 2 (MRCC2), applied to the mutual fund, segregated fund. This would help ensure that advisers should disclose the performance of the fund in dollars and a description of the fees paid by customers in their surveys.
The regulatory body of quebec is in particular focus its efforts on ” a statistical portrait of the incentives related to the sale of insurance products “. The data that will be collected will be used to guide its activities of supervision and monitoring, ” she said.
As regards the sale of insurance via the Internet, the Authority indicated that it would continue ” to support the industry in the implementation of this new framework “.
Careful monitoring of the insurers
Following the publication of his Report of the intervention, cross-group disability insurance, in which the Authority had identified gaps in the management, but no systemic problem, the regulator plans to verify the implementation of the good practices recommended in the report with the relevant insurers.
Finally, the Authority says that it will “particular attention” to the business practices of insurers that offer certain products that are more complex using a technical language or restricting coverage, such as critical illness insurance.