|
Industry Practices Review Committee |
The CCIR approved a work plan to review the implementation of
the three IPRC principles -
priority of
the client’s interest, disclosure of potential conflicts of
interest, and product suitability
across
Canada.
Various
industry associations have suggested that the principles be
implemented through voluntary guidelines.
The
IPRC will conduct an implementation review of insurers and
intermediaries over this winter. The aim is to confirm the
extent to which the principles have been embraced by industry
and to assess whether further regulatory action is required. |
|
Reciprocal Licensing Committee
|
The CCIR
reviewed the status of the reciprocal licensing
reliance model that was implemented as of July 4, 2006 in each
jurisdiction where it was possible.
Under the reliance model, a host jurisdiction relies on most
of the requirements of the agent’s home jurisdiction but can
request that the agent meet some further jurisdiction-specific
requirements.
The
CCIR thanked the Reciprocal Licensing Committee
for a job well done, noted that they have fulfilled their
mandate admirably and agreed to disband the committee.
|
|
Risk-based Market Conduct Regulation
-
Complaint Data Sub-Committee
|
Quebec and Ontario updated the
CCIR on the implementation of their SRP-CRS, Système de
rapport de plaints – Complaint Reporting System.
Since January 2005, Quebec and Ontario have worked together to
develop a simplified internet-based complaint reporting
system. The system is now operational in these two provinces.
The CCIR is now considering how this system could be expanded
nationally.
The CCIR is now considering how this system
could be expanded nationally. |
|
IVIC Point of Sale Sub-Committee |
The CCIR is focus testing a new point of sale document for
Individual Variable Investment Contracts (Segregated Funds)
to provide a concise, plain language summary to help advisors
explain to consumers the nature of the insurance aspects of
segregated funds.
This initiative is the insurance industry specific part of a
joint initiative by CCIR and the Canadian Securities
Administrators (CSA) under the auspices of the Joint Forum of
Financial Market Regulators to harmonize the point of sale
documentation for mutual funds and segregated funds.
The focus testing includes both consumers and advisors.
Primarily the testing will examine the clarity, readability,
organization, and usefulness of the document, whether or not
there are any gaps in the information provided, and the appeal
of the document. |
|
Power of Attorney and Undertaking |
The CCIR has set up a working
group to review the policies and procedures around the Power
of Attorney and Undertaking (PAU) system to ensure they are
still relevant and appropriate.
The Power of Attorney and Undertaking system was set up in the
1960’s as a method to allow U.S. personal auto insureds to
drive in Canada. The PAU that U.S. insurers file with the CCIR
helps to ensure that the U.S. driver’s insurance meets the
compulsory minimums of all Canadian jurisdictions. |
| Next Meeting |
The CCIR Spring 2007 Meeting will
be held on March 29 – 30 in Toronto, Ontario |
