22 November 2018 11:30
Photo : Freepik
L’Association canadienne des compagnies d’assurances de personnes (CLHIA) has made changes to its guidance document LD19, Communication of the compensation related to group insurance and retirement plans, in response to comments received by more than 500 advisers in the group product insurance and retirement plans across the country.
Although further consultations are planned, the changes should be final, reported in the Journal of insurance Wendy Hope, vice-president responsible for external relations for CLHIA.
Direct compensation and indirect
Thus, the percentage and the dollar value of the total direct compensation will be provided. This includes the dollar value of the lump-sum payments, such as bonuses for transfer or for maintenance contracts.
For the compensation of indirect, participation of a counsel, or his or her eligibility, will be given, without, however, specifying a value in dollars or as a percentage.
The total value of any remuneration in kind will be disclosed only if it is greater than $ 5,000 per councillor per year and must be accompanied by contextual information.
Last may, the CLHIA had reoriented its guidance in the wake of the discontent of many advisors faced. It was announced that the advisers in the collective will be able to directly provide the information relating to the disclosure of their remuneration to their clients.
“We plan to continue to work closely with the advisors to ensure that the industry treats its customers fairly and that it provides the best possible range of products and services at a reasonable price,” said Stephen Frank, president and chief executive officer of the CPOMA.