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Compliance Update: Ensuring Advisor Practices Align with Statutory Requirements

Join us at the 2016 Compliance Update Living Benefits Symposium, where VP of Compliance Earleen Moulton from BridgeForce Financial Group will discuss audits of advisor practices, FSCO enforcement of E&O insurance, monitoring/oversight, and more. Learn how to stay in compliance and prevent harm to consumers.

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Compliance Update: Ensuring Advisor Practices Align with Statutory Requirements

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  1. Compliance updateLiving benefits symposium, 2016 Earleen Moulton VP Compliance, BridgeForce Financial Group

  2. Agenda • Audits of advisor practices • FSCO enforcement of E&O insurance

  3. Audits for suitability

  4. Monitoring /oversight • Significant controls, manages risk • Screening – at a point in time -assessing suitability to be contracted & risk (to MGA and Carrier) • Monitoring – for ongoing suitability -identify patterns to detect and prevent harm to consumers

  5. New CLHIA Reference Document “Insurer Systems for Monitoring Statutory Compliance of Advisors” • Describes procedures for monitoring compliance with statutory licensing requirements • ON Reg. 347, s.12

  6. What’s in scope? 1. valid licence 2. advisor disclosure (managing conflicts of interest) 3. CE 4. E&O 5. Needs bases sales process 6. Privacy & AML compliance programs

  7. Will you be audited? • Some chosen based on risk, some random • Would you be considered a ‘risky’ broker? • Time to get your compliance ‘house’ in order; then BAU

  8. Who else is asking? • Sun life has a new process • Brokers with outside business activities will ask asked to provide most of these compliance elements • Carriers who sponsor agent licences will be held accountable • So will carriers you do business with

  9. FSCO and E&O

  10. Watch for email this fall • Agents will see consequences of non-compliance ratchet up, including administrative monetary penalties (AMP) -Carriers will also be held accountable (Reg. 347) • Agents will be required to tell FSCO which carriers they do business with -FSCO not proceeding with designating ‘primary insurer’

  11. E&O a concern in other jurisdictions • SK, July 27, 2016: Effective September 1, 2016, those who allow their mandatory E&O policies to lapse will be subject to a minimum base fine of $1,000 for each lapse. • BC, Notice from June 2015: • Use of single blanket E&O policy by multiple agencies • E&O policy limits must be specific to insurance • Licensed agents holding administrative assistant’s coverage

  12. Results of FSCO agent exams • Common findings: • inadequate needs analysis documentation • no letter of engagement/not documented adequately • failure to disclose all carriers an agent does business with • lack of written documentation of conflicts of interest.

  13. Questions?

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