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.
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 |
| 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 |
Disponible en français sur demande.