Following the adoption of Bill 141 and in light of various interpretations as to how its provisions will be applied, a number of RCCAQ members have voiced concerns about their insurance advisory role. We would like to provide brokers with reassurance in this regard while making a few clarifications.
On June 13, the latest version of the Act respecting the distribution of financial products and services was adopted. Since then, we have focused our efforts on how the new oversight mechanisms will be implemented in concrete terms and on the new regulatory approach.
As regards the issue of advisory services, the RCCAQ takes the view that the new legislation maintains the status of certified representatives, who will thus be required to continue acting in an advisory capacity and to ensure that insurance products meet clients' needs (Section 27).[1] If individuals are ever required to provide insurance-related advice, the law still states that they must hold an insurance representative certificate issued by the AMF.
Mindful of the fact that the AMF will be responsible for drafting and enforcing the regulations accompanying the new law, we believe it particularly relevant to remind RCCAQ members of the remarks made by AMF CEO Louis Morisset during a speech in Quebec City on May 22 (reported on July 6 in an article in the Journal de l'assurance, in french only). Mr. Morisset noted that it is "simply incorrect to claim […] that anyone is now authorized to advise Quebec consumers wishing to purchase insurance products".
Considering the concerns raised in this regard, we thought it necessary to reaffirm that the brokerage profession is highly regarded, as is the advice that brokers offer clients.
The regulatory component is expected to take several months. The RCCAQ will be continuing its efforts in this regard and will keep on making brokers' voices heard!
If you would like to get in touch or if you require more detailed information on this issue or any other aspect of the new legislation, please email us at communications@rccaq.com.
[1] Unofficial translation: "Insurance representatives must enquire about a client's situation in order to identify his or her needs. They must also provide clients with appropriate advice in the areas forming part of the discipline(s) in which they are authorized to act..." Section 27, LDPSF (our emphasis).
