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L&H Insurance Technical Advisory Committee (“TAC” or the “Committee”) on Segregated Funds
Meeting summary
Date: November 3, 2022
Time: 3:00 pm to 4:30 pm
Location: Videoconference – Ontario Room 113, 25 Sheppard Ave West.
Purpose of Committee: The Financial Services Regulatory Authority (“FSRA”) established the Committee to assist with its 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 in regulating 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.
- Jordan Clark, representing Sun Life and replacing Ali Salam
- Kevin Hwee, representing Canada Life and replacing Matt Poetker
- Teri Ryan, representing Equitable Life and replacing Colin Simpson
2. Segregated Fund initiatives – Update and recap
FSRA staff provided a recap of national segregated fund initiatives by the Canadian Council of Insurance Regulators (“CCIR”) and the Canadian Insurance Services Regulatory Organizations (“CISRO”), which include concurrent work on four topics:
- Total Cost Reporting
- Upfront Compensation
- Conduct Matters
- Technical Matters
FSRA staff indicated the outcome of the four work streams will be a comprehensive national Segregated Fund Guidance, aligned with industry best practices. CCIR & CISRO are targeting 2024 to issue its final consolidated Guidance.
When the consolidated national guidance is complete, FSRA will implement it in Ontario.
3. Proposed Deferred Sales Charge rules:
FSRA staff provided an update on FSRA’s proposed rules for Deferred Sales Charges (“DSC”). Please see the public consultation for further details.
4. Upfront Compensation for Segregated Funds – Discussion paper
FSRA staff reviewed CCIR’s & CISRO’s Discussion Paper on Upfront Compensation for Segregated Funds and sought Committee member feedback on targeted customer outcomes for consumers and the impact of potential post-consultation scenarios.
FSRA staff noted the consultation period would end on November 7, 2022.
Members and FSRA staff discussed potential post-consultation scenarios.
5. Next steps
FSRA staff thanked the TAC members for their contribution to the committee and will continue will 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.
Attendance:
|
Name |
Company |
Attended |
|---|---|---|
| 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 |
| Kelly Gonsalves | Manulife | Yes |
| David Howarth | Primerica | Yes |
| Jules Kerlinger | RBC Wealth Management Financial Services | Yes |
| Monica Liang | Ministry of Finance | Yes |
| Gina Stephens | Ministry of Finance | Yes |
| Adam Levy | FSRA | Yes |
| Carol Allen | 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 |