An administrative monetary penalty (AMP) may be imposed on licensed insurance agents if they fail to comply with Ontario’s insurance legislation and regulations.

The Financial Services Regulatory Authority of Ontario (FSRA) can impose these financial penalties if an insurance agent breaches an order, undertaking or licence condition.

What is an administrative monetary penalty (AMP)?

An AMP is a financial penalty imposed by the regulator, rather than a court. An AMP is levied to an individual or a business when they fail to comply with a regulation or legislation.

Procedures for imposing an AMP

There are two procedures that FSRA uses to impose an AMP, depending on whether it is a summary AMP or a general AMP.

Summary AMP

General AMP
  1. FSRA will notify the insurance agent that an AMP may be ordered.
  2. The insurance agent will have 10 days to respond with a submission.
  3. FSRA will consider the insurance agent’s submission and decide whether to issue an AMP.
  4. If FSRA decides to issue the AMP, the insurance agent will receive an AMP Order.
  5. The insurance agent will have 15 days from the day they receive the AMP Order to make an appeal to the Financial Services Tribunal.
  1. FSRA will issue the insurance agent a Notice of Proposal.
  2. The insurance agent has 15 days after the Notice of Proposal to request a hearing at the Financial Services Tribunal.
  3. If the Financial Services Tribunal upholds the proposal, FSRA issues an AMP Order.