Dear RCCAQ members:
Two years following the provincial government's consultation on the review of the Act respecting the distribution of financial products and services (ARDFPS), Quebec's finance minister, Carlos J. Leitão, tabled draft legislation ("omnibus" Bill 141) for the financial sector.
After extensive lobbying and various initiatives in which our members contacted elected officials concerning issues of interest to brokerage firms, the RCCAQ welcomes the action taken today.
The main issues covered in the draft legislation are as follows:
- Online sales of insurance products
- Distribution without the involvement of insurance representatives
- Oversight of insurance representatives
- Compensation in the event of fraud
Limitations on ownership rights, which were the focus of another consultation last spring, are not covered in the draft legislation. The provincial government will be dealing with this issue separately.
Continuing to defend your interests
The legislation tabled this morning sets out a voluminous number of changes to laws governing the financial sector. At this early stage, however, we can confirm a number of points raised in the introductory explanatory notes.
Among other changes, the Act will be amended to:
- Enable firms to offer financial products and services using technological means.
- Do away with the Chambre de la sécurité financière (CSF) and the Chambre de l’assurance de dommages (CHAD).
- Make the AMF responsible for overseeing insurance representatives' activities, including ethics and training.
We will be rolling up our sleeves to analyze the government's proposals in greater detail as we track the progress of the legislation over the next few weeks prior to its final adoption. Once again, our primary concern will be to defend your interests by calling for the implementation of a regulatory framework that is appropriate, consistent and clear.
Your involvement has been essential, although our efforts are far from over. Let's continue to work together to provide brokerage forms with a modern and effective legislative framework.
Kathleen Ann Rake
Chair, RCCAQ
