On Tuesday this week, Quebec's finance minister tabled Bill 150, which includes the following provision: if you are a broker, you must offer your clients insurance products from at least four different insurers per proposal. Otherwise, you must demonstrate that you have taken all steps to comply with this rule or you must register as an insurance agency.

20% rule 

Bill 150 also states that your brokerage firm will be unable to register if a financial institution, financial group or legal entity (e.g. corporation) holds a significant interest in your firm's equity capital or decision making. The "significant interest" principle is explained as follows: "The power to exercise 20% or more of the voting rights attached to the shares issued by the firm is a significant interest in its decisions. Holding shares issued by the firm that represent 20% or more of its equity capital is a significant interest in that equity capital." [unofficial translation]."

Does this apply to your firm?

It goes without saying that the RCCAQ will be lobbying the provincial government in order to make your voices heard on these issues. In order for us to grasp the full impact of Bill 150 on your firm, please share your reactions with us. Will the Bill's provisions apply to your firm? Taking all insurance categories into consideration, how many quotes would you be able to provide your clients with in the current market? Please email your reactions and other comments to tletertre@rccaq.com.

Kathleen Ann Rake
RCCAQ Chair