Representatives from the Financial Services Commission of Ontario (FSCO) presented a regulatory update and answered several questions from the audience at the Independent Financial Broker's most recent summit in Toronto.
For those who were unable to attend the event, the IFB published a summary on November 10 that highlighted a number of important points.
The regulator revealed that it has already conducted 79 on-site compliance reviews with life insurance agents since April 2015, and plans to conduct another 121 by March 2016. Of the reviews completed, there were only 10 agents who were not providing clients with written disclosure.
"FSCO noted that while this is a significant improvement, they are concerned that the requirement is not being met 100% of the time," reads the IFB report. "Written disclosure is only one aspect of the compliance review. Examiners will be looking for proof of suitability and affordability of insurance products recommended to clients."
FSCO also took the opportunity to remind agents that it no longer mails out paper notices to notify them when their errors and omissions (E&O) insurance coverage is about to expire. It now sends email notifications 30 days before an agent's policy is set to expire.
During the question and answer period, FSCO was asked about how incorporated agents should set up their E&O insurance coverage. "When an agent also operates an agency or a company, each entity is required to acquire E&O insurance coverage (i.e., both individual and corporate)," reads the IFB summary. FSCO indicated that agents should visit its web page for more detailed information regarding individual and corporate E&O.