If you are a licensed service provider in Ontario and no longer plan on doing business in the auto insurance sector, you must properly surrender your service provider licence. Failure to file the next Annual Information Return (AIR) and stopping fee payments does not deactivate your licence.
Please login to your FSRA accountand complete the “Surrender Licence” application.
The CEO of the Financial Services Regulatory Authority of Ontario (CEO) will allow you to surrender a service provider licence unless the CEO believes it is not in the public interest. Before allowing you to surrender your licence, the CEO will consider:
- Whether there are any outstanding regulatory matters involving the business or the Principal Representative.
- Whether the business has any outstanding fees, charges or penalties payable under the Insurance Act (Ontario).
- Whether the business has made reasonable arrangements to retain its records for its listed expenses and has adequately informed the CEO of the location of those records.
What happens when you give up your service provider licence?
If your business gives up its service provider licence, it can no longer receive direct payments from insurers for listed expenses under the Statutory Accidents Benefits Schedule (SABS) and will not be able to submit invoices through Health Claims for Auto Insurance (HCAI).
Service providers that surrender their licence no longer have to pay the annual regulatory fees or file the AIR.
Selling your business
If you hold a service provider licence in the name of a partnership or in your personal name as a sole proprietor, you cannot transfer the licence along with the sale of your business.
If you are selling your business and the service provider licence is held in the name of a corporation, you have two options:
- Sell your business assets (facility and client records), excluding your service provider licence. After you surrender your licence, the purchaser of your business assets can add your facility HCAI account number(s) to their service provider licence by requesting a change on their FSRA account.
- Sell your business through a share sale process. When a corporation buys the shares of your business, the new owner has effectively purchased your service provider licence. The Principal Representative and the new owner of the corporation are responsible for submitting the applications to update the licence to reflect ownership changes, such as adding or removing directors/officers/partners, etc.
FSRA reserves the right to review applications for suitability.
Need more help?
For more information about how to surrender a service provider licence, contact FSRA by email at [email protected].