Life and Health Insurance
Public comment closed
Comment Due Date

Thank you for providing your feedback on FSRA’s proposed Guidance on Life Insurance Agent & MGA Licensing Suitability.

The request for submissions is now closed.

We appreciate the comments and questions received to date and look forward to sharing with you the final Guidance. Stay up to date on Guidance releases on our newsroom. Follow us on LinkedIn and subscribe to our mailing list for quick updates.

To better protect consumers, the Financial Services Regulatory Authority of Ontario (FSRA) has proposed Guidance that clearly sets out the requirements to be suitable to hold a life insurance agent licence in Ontario. 

FSRA wants to ensure all life agents, including managing general agencies (MGAs), have the skills necessary to be licensed and will comply with the law, treat customers fairly and adhere to all legal and regulatory obligations.

The proposed Guidance provides a reference for applicants and agents to understand how past and current conduct may affect their suitability to hold a life insurance agent licence. It also reiterates oversight responsibilities for life insurance companies. 

FSRA’s six-point action plan

FSRA is releasing this proposed Guidance as part of its six-point action plan to correct troubling business practices in the life insurance sector. FSRA’s supervisory reviews have found gaps and a lack of clarity relating to the roles and responsibilities shared among insurers, MGAs, and independent agents. This includes a lack of agent training and supervision, unsuitable product sales, and agent recruitment and compensation models that may lead to the unfair treatment of customers.

The six-point action plan sets out an enhanced approach to sector supervision, a new regulatory framework, industry guidance, enforcement, whistleblower protection, and a consumer education campaign. 

FSRA continues to take action to strengthen the regulatory framework for MGAs and other intermediaries that distribute life insurance products. This includes, but is not limited to, the implementation of a new proposed Rule which would introduce new requirements and duties relating to developing compliance monitoring systems and overseeing the conduct of life insurance agents. FSRA plans to consult on a draft Rule in the coming months. In addition, FSRA has heard directly from stakeholders that additional options should be considered to strengthen the regulatory framework. For example, some stakeholders have suggested the creation of a new licensing class with specific requirements and obligations.

The consultation period for proposed guidance on Life Insurance Agent & MGA Licensing Suitability is now open and will close on February 9, 2024.

Learn more:


Before we begin, please make sure you do not include any personal or private financial information. If your inquiry does require this information be shared with us, please call us at 1-800-668-0128 or email us at [email protected] for instructions.

By submitting your content, you agree to have your materials posted on our engagement portal, used in reports and other materials prepared by Financial Services Regulatory Authority of Ontario (FSRA) that may be shared with the public. Content is moderated so that all posts are respectful and professional. The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, applies to all online content.

Use left and right arrows to navigate between tabs.
Sector Comment Date posted Sort ascending
Life and Health Insurance
[2023-015 ] Jules Bonk - BonkNote

Life and Health Insurance
[2023-015 ] John A. Adams - Primerica Financial Services

Life and Health Insurance
[2023-015 ] Phil Marsillo - IDC Worldsource Insurance Network Inc.

Life and Health Insurance
[2023-015 ] Renée Laflamme - iA Financial Group

Life and Health Insurance
[2023-015 ] Andrew Fink - HUB Financial Inc.

Life and Health Insurance
[2023-015 ] Cathy Hiscott - PPI Management Inc.

Life and Health Insurance
[2023-015 ] Andrew Fitzpatrick - Canada Life

Life and Health Insurance
[2023-015 ] Phil Marsillo - The Canadian Association of Independent Life Brokerage Agencies (CAILBA)

Life and Health Insurance
[2023-015 ] Lyne Duhaime - Canadian Life and Health Insurance Association (CLHIA)

Life and Health Insurance
[2023-015 ] Giuseppina Marra - Desjardins Group

Life and Health Insurance
[2023-015 ] Nick Pszeniczny - FINANCIAL HORIZONS

Life and Health Insurance
[2023-015 ] Susan Allemang - Independent Financial Brokers of Canada (IFB)
Attached is the response from Independent Financial Brokers of Canada (IFB).
Life and Health Insurance
[2023-015 ] Jean-Paul Bureaud - FAIR Canada
Attached is a comment letter submitted on behalf of FAIR Canada.
[2023-015 ] Consumer Advisory Panel to The Financial Services Regulatory Authority 0f Ontario (FSRA)
The Consumer Advisory Panel had the opportunity to participate in this consultation. The Panels official submission provided in the attached document.
Financial Planners and Advisors
[2023-015 ] Jason Bonneteau - W.P.G The Wealth Planning Group Inc
I wanted to commend the FSRA for finally looking into deceitful practices of multi level marketing companies like [insurance company] and others that consistently bring on unqualified part time people into the financial industry. Multi level market agencies should have no place in financial services. They promote "recruitment" and agencies rather than client needs. I look forward to watching new rules coming into affect which would greatly prohibit this recruitment style agency.
Life and Health Insurance
[2023-015 ] NARINDER P SUDAN - Happy Financial Services
I found it very interesting & informative. I request there should be webinars on best practices time to time making the advisors
more efficient and helping them to write trouble free business.
Date posted Sector Question and response
Life and Health Insurance

Question: There is a guideline for compensation on group benefit plans, often referred to as the Crown Scale, but there are other arrangements in place with some advisors and brokers that include bonuses, provision of support staff and payment or provision for office space. Is there any consideration to mandating all forms of compensation and carrier relationships be disclosed to customers (plan sponsors) ?

FSRA response:

Thank you for your question. The scope of the proposed guidance on Life Insurance Agent and MGA Licensing Suitability does not include the disclosures referred to in your question. Topics out of scope that may warrant further review will be noted in the consultation summary and may inform FSRA’s future work to enhance market conduct oversight to protect consumers.