The AMF is in the process of sending out a self-evaluation questionnaire concerning the provisions of Bill 141 and the accompanying regulation. A number of member firms have already received the questionnaire and have voiced certain concerns to the RCCAQ, particularly regarding whether any legislative or regulatory changes have taken effect in recent months.

After checking with various legal advisors, we note that the wording of certain sections of the questionnaire apparently does not match the Bill's provisions. Nevertheless, it is important to note that, despite these discrepancies, nothing has changed in legislative or regulatory terms. Certain provisions remain in effect, particularly section article 38 of the Act respecting the distribution of financial products and services, which reads as follows:

• Damage insurance brokers who offer insurance products directly to the public must, each time they offer an insurance product belonging to a class determined by regulation of the Authority to a client who is a natural person, be able to obtain quotes from at least three insurers who do not belong to the same financial group, within the meaning assigned to that expression by section 147.

• Such brokers must keep the information allowing them to prove that they made every effort to comply with the first paragraph and must update such information regularly.

• The regulation made for the purposes of this section may only pertain to damage insurance products intended to meet personal, family or household insurance needs.

In light of the preceding, please note that you are not required to systematically present three quotes. Section 38 actually states that you need to be able to obtain three quotes—you are not required to provide clients with all three quotes.

It is also essential to remain in compliance with section 27 of the Act, which reads as follows:

• 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.

Notes in client files are also important in the context of section 38. Brokers are advised to make a note of any steps that they may take prior to providing a quote and that could justify offers presented to clients, particularly as regards insurance products designed to meet their needs.

As regards disclosure expectations, particularly as regards business concentration/links, please consult the following AMF document.

If you have any questions, please send us an email (accompagnement141@rccaq.com).