May 7, 2019 13:30
Before the independent advisors gathered at the annual congress of theAssociation of professional advisers in financial services (APCSF), Frédéric Pérodeau reiterated that theAuthority of the financial markets will continue to be a regulator of proximity. The superintendent of the assistance to clients and the supervision of the distribution has added that the regulator would be even better to explain its decisions, particularly in the wake of the future regulation on Internet sales. The Journal of insurance has attended this event, which took place in Montreal on may 3.
Mr. Pérodeau has not announced a publication date of the regulation, but has expressed a willingness to publish it as soon as possible. “We have a date informal that I can’t share with you. This will definitely be in the month of may, ” he revealed.
The superintendent talks about a regulation that will contribute to a framework of robust sales through the Internet : it protects the consumer, and remains flexible enough to not hamper innovation. “It speaks of the importance of the council. Some see the regulation as a disturbance or even a threat. We believe that it is a reaffirmation of the importance of the representative “, insists Mr. Pérodeau.
The superintendent cited examples of regulations that come under it to strengthen the role of the adviser. The regulations require that a firm ensure the availability at all times by a certified representative on a transactional site, when required by the client. The regulation requires that the means of communicating with a representative is visible at any time. “This is the standard for the most demanding. Again, we recognize the importance of the council. “
Uncertainties and clarifications
During the Day of the insurance event related to the Journal of insurance, Frédéric Pérodeau was held to clarify some of the points on selling by the Internet, recalling the principles set out in the Act respecting the distribution of financial products and services (the ACT) and the insurance Act.
Aware of the uncertainty with respect to the regulation which will enter into force on June 13, 2019, and of which nobody has yet seen a line, Mr. Pérodeau was added to the congress of the APCSF that the framework will strengthen the role of the adviser, in addition to inspire the certainty, predictability and confidence. “We want to explain what we do and why we do it “, he added.
“The amendments to section 27 of the ACT have caused much ink to flow, and created uncertainty. However, the role of the representative has not changed for us : he remains the only person who can provide insurance. But he no longer has the obligation to collect personal information necessary to identify the needs of his client. It may delegate the collection of information to a non-certified person. However, it remains responsible for the collection. He should inquire of the client’s situation, and offer him a product that suits their needs, ” said the superintendent.
Mr. Pérodeau was also clarified that the representative must ensure that the person to whom it delegates the collection be done objectively, and do not give advice. The cabinet, for its part, must ensure that only representatives certified to give advice to its customers.
No double standard
Questioned by a counsel on the obligations of financial needs analysis between counsel in person, and transactional site, Mr. Pérodeau was stressed that it would tolerate no divergence. “A client should not be less protected in the one case as in the other. There is no compromise. If you tap on the fingers of an advisor when it has no analysis of needs in its folders, it will be the same thing in the digital space. We will make a major effort to ensure that this is respected. “
Another councillor asked how much the customer will have the advice of oral on a transactional site. “There will be no robot-certified consultant “, has launched Mr. Pérodeau. No question, chat with a robot : there must be someone at the other end. The superintendent has not, however, been able to say if the council should be given compulsorily orally by the adviser, or it may be done by chat. The answer will probably arrive by the regulations.
Although the Internet is unavoidable, the counselor will always have its place, he said. He cites, in this sense, the study of the ORGANIZATION, the property and casualty Insurance in the digital age, published in march 2018, and the CIRANO on the value of the council published in 2016 by economist Claude Montmarquette (The Gamma Factor and The Value of Financial Advice).
“I do not know anyone of you today that the Internet is here to stay and that a portion of consumers wish to acquire some of the products using digital means. They do not form a large portion, but it is in constant progression. However, information technologies are an opportunity rather than a threat. Advisors who adopt the transition to digital will differ, ” concluded Frédéric Pérodeau.
Changes to come
During his speech at the congress of the APCSF, Frédéric Pérodeau echoed the participation of stakeholders in the consultations around the regulations on the modes of alternative distribution (Internet sales and sales without a representative). They have walked, and were involved, ” he adds, mentioning the recommendations gathered from these participants and of the 25 submissions from industry bodies. “They can lead to changes if they are not incompatible with the protection of the public “, says he.