On June 27, Quebec's Autorité des marchés financiers (AMF) issued a notice aimed at clarifying representatives' obligations with respect to information collection and insurance advice.

In issuing this document, which is supported by various concrete examples, the AMF is seeking to clarify how it intends to apply certain provisions of Bill 141 (in particular section 27 of the Act respecting the distribution of financial products and services)*, as well as to guide insurance representatives in their professional practice.

The RCCAQ has reviewed the AMF's notice and would like to emphasize two key points:

• If the collection of a client's information can be delegated to non-certified persons or can be carried out by a computerized tool, the AMF confirms that "Representatives remain fully responsible for the collection of information and cannot transfer this responsibility to the persons they mandated."

• Even though the AMF explains the definition of insurance advice and provides examples of situations in which non-certified persons might provide such advice, it is also careful to set out its expectations regarding certified representatives: "The AMF intends to apply the law so that a firm ensures that persons who act on its behalf and who provide insurance advice to its clients are representatives. Consumers who contact a firm to obtain advice expect that advice to be provided by a representative, i.e., an insurance professional who has the required competencies and who must comply with professional development obligations and a code of ethics. The AMF also intends to apply the law so that representatives do not mandate non-certified persons to give their clients insurance advice."

To ensure the highest possible level of compliance, the RCCAQ encourages brokerages to read the AMF's notice, in addition to the relevant CHAD section. The RCCAQ also urges its members to exercise caution when putting in place new procedures involving information collection by non-certified persons. The distinction between gathering factual information (or otherwise) may prove difficult to determine at times and remains open to interpretation.

Against that backdrop, the steps involved in analyzing needs and providing advice to consumers are all the more crucial, particularly since certified representatives are the only ones who can carry out these functions while also selling insurance products.

In light of their advisory role and close ties with clients, as well as their legal and ethical obligations, brokers are professionals on whom consumers can rely when it comes to determining their needs and safeguarding their financial well-being.

* Section 27: "Insurance representatives must inquire into their clients’ situation to assess their needs.

They must ensure to appropriately advise their clients regarding matters that fall within the sectors in which they are authorized to act; if they can, they shall offer their clients a product that meets their needs."