Financial products and services are highly regulated. They are governed by federal and provincial legislation and regulatory requirements. You are obligated to meet and comply with the requirements of:
a) the Provincial and/or Territory regulatory body in which you hold your license(s);
b) Personal Information Protection and Electronic Documents Act (PIPEDA);
c) the Financial Transactions Reports Analysis Centre of Canada (FINTRAC).
The standard compliance and governance regime includes the following:
3.1 Licensing
• It is the responsibility of the Company to maintain valid individual and/or corporate license(s) for each jurisdiction in which you represent and/or service policyholders. Copies of any applicable licenses must be made available to the Company upon request. You are responsible for complying with any conditions required to keep your license(s) in good standing. E.g. maintaining Errors and Omissions (E&O) insurance and obtaining Continuing Education credits.
3.2 Holding Out
• Of special importance is the way you hold yourself out to the public based on your license and credentials, as well as your contract status with any insurance Company which you represent and/or service policyholders
3.3 E & O Insurance
• Continuous licensing is a requirement by provincial regulators. Contracted Advisors must provide proof of license and Errors and Omissions Insurance (E&O) when requested. Individual and/or corporate E&O coverage must be maintained and sufficient for each jurisdiction in which you are licensed. It is your responsibility to notify the Company and any affected Insurance Company in the event of a claim or potential claim. It is important that you be familiar with your E&O insurance policy and coverage limits or restrictions.
3.4 Continuing Education Credits
• It is your responsibility to obtain and keep records of sufficient Continuing Education credits to meet your licensing requirements.
3.5 Contracts
• Have active contract(s) with each insurance Company you represent and for whom you service policyholders.
3.6 Holding Out & Advertising
• You must hold yourself out to the public in a manner that fairly represents your level of licensing, education, relationship with the Company and any contracted carrier. Any title or designation used must be accurate and in keeping with your license and/or industry designated credential(s). You are not authorized to develop personalized advertising or promotional materials that contain the logo(s) or trademark(s) of the Company or insurance carriers without the prior authorization and written consent from the Company and/or insurance carrier itself for each specific usage. The use of any Company logo or trademark or insurance carrier logo or trademark must be submitted to the companies and written approval received prior to any distribution or use
3.7 New Advisor Supervision
• In accordance with provincial regulations in British Columbia and Ontario, all new life and/or accident and sickness insurance Advisors require supervision by a qualified licensee for a period of 24 months of active licensed experience. If a new Advisor ceases to be supervised prior to accumulating 24 active licensed months, he/she must immediately cease all insurance activities and notify Council that he/she no longer has an active supervisor. Until a new supervisor undertaking is obtained the new Advisors license will be inactive.
3.8 Conflict of Interest
• You must hold always act in the best interest of your client when providing advice or recommending products. There should be no real or perceived direct or indirect interest of your own involved in any recommendation or transaction. You must comply with any applicable industry or legislative disclosure requirements. The use of a Disclosure Statement with each transaction helps to enhance confidence for your client in yourself, your products and your industry. You must make timely disclosure in writing to the Company of any personal, business, commercial or financial interest that my create or appear to create a conflict between your interest and those of the Company or any contracted carrier having regard to the business relationship between yourself and either of them.
3.9 Compliance Regime
• All licensed Advisors are required to have a documented personal and/or corporate Privacy Policy in accordance with PIPEDA; Under FINTRAC legislation, all licensed Advisors and/or corporations are required to have a documented compliance regime, incorporating the following five elements:
i. appointment of a compliance officer (owner/operator);
ii. development and application of written compliance policies and procedures;
iii. assessment and documentation of risks of money laundering and terrorist financing, and measures to mitigate high risks;
iv. implementation and documentation of an ongoing compliance training program; and
v. a documented review of the effectiveness of policies and procedures, training program and risk assessment.
