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L&H Insurance Technical Advisory Committee (“TAC” or the “Committee”) on Segregated Funds

Meeting summary

Date: February 10, 2023
Time: 2:00 pm to 3:30 pm
Location: Videoconference - Finch Room 1733, 25 Sheppard Ave West.

Purpose of Committee: The Financial Services Regulatory Authority of Ontario (“FSRA”) established the Committee to assist with FSRA’s review of the distribution and administration of segregated funds in Ontario, particularly regarding consumer issues. The Committee’s input will help FSRA to develop effective processes, guidance, and approaches to regulate the insurance sector.

1. New members

FSRA staff welcomed new members to the TAC on Segregated Funds since the group last met on January 15, 2021.

  • Sheri Epp, representing Manulife and replacing Kelly Gonsalves
  • James Lee, representing Primerica and standing in for David Howarth

2. Proposed Deferred Sales Charge rules:

FSRA staff provided an update on FSRA’s proposed amendments to the Unfair or Deceptive Acts or Practices (“UDAP”) Rule with regard to Deferred Sales Charges (“DSCs”). FSRA staff and Committee members discussed whether the rule intended to apply to interest investments held in a segregated fund contract, potential issues for segregated fund contracts housed on older technical systems, and disclosure requirements in instances where insurers can default customers into a sales charge option which is better than a deferred sales charge. Please see the public consultation (which closed February 23, 2023) for further details.

3. Upfront Compensation for Segregated Funds – Discussion paper

FSRA staff provided an update on progress since CCIR’s & CISRO’s Discussion Paper on Upfront Compensation for Segregated Funds. The consultation period ended on November 7, 2022

4. Next steps

FSRA staff thanked the TAC members for their contribution to the Committee and will continue to reach out to them throughout the development of the segregated fund work streams. FSRA staff welcomed any additional feedback TAC members may have at any time.





Daniel Steinkey IFB (Independent Financial Brokers of Canada) Yes
Pierre Vincent Industrial Alliance (iA Financial Group) Yes
Jordon Clark Sun Life Financial Yes
Eric Wachtel CAILBA (Canadian Association of Independent Life Brokerage Agencies) Yes
Kevin Hwee Canada Life Yes
James Wood CLHIA (Canada Life and Health Insurance Association) Yes
Kerrie Moore Co-operators Life Yes
Geoff Gibson Empire Life Yes
Teri Ryan Equitable Life Yes
Aly Damji Hub Financial Yes
Tamara Steinberg ivari Yes
Sheri Epp Manulife Yes
James Lee Primerica Yes
Jules Kerlinger RBC Wealth Management Financial Services No
Monica Liang Ministry of Finance Yes
Adam Levy FSRA Yes
Chris Caldarelli FSRA Yes
Erica Hiemstra FSRA Yes
Huston Loke FSRA Yes
Joel Gorlick FSRA Yes
Mike Winter FSRA Yes
Raymond Pearce FSRA Yes
Tim Miflin FSRA Yes