O. Reg. 410/04: GENERAL

 

ontario regulation 410/04

made under the

registered insurance brokers act

Made: December 15, 2004
Filed: December 16, 2004
Printed in The Ontario Gazette: January 1, 2005

Amending Reg. 991 of R.R.O. 1990

(General)

1. Section 1 of Regulation 991 of the Revised Regulations of Ontario, 1990 is revoked.

2. (1) Subsection 6 (1) of the Regulation is amended by adding “and” at the end of clause (b) and by revoking clause (c).

(2) Subsections 6 (3) and (4) of the Regulation are revoked.

3. Section 11 of the Regulation is revoked.

4. Section 14 of the Regulation is amended by adding the following paragraph:

7.1 A member shall disclose in writing to a client or prospective client any conflict of interest or potential conflict of interest of the member that is associated with a transaction or recommendation.

5. Paragraph 12 of the definition of “misconduct” in subsection 15 (1) of the Regulation is revoked and the following substituted:

12. The payment of any referral fee or finder’s fee to, or the acceptance of a referral fee or finder’s fee from, a person who is not,

i. licensed as an insurance agent or broker under the laws of any jurisdiction,

ii. licensed to sell mutual funds under the laws of any jurisdiction,

iii. licensed as a real estate agent or broker under the laws of any jurisdiction,

iv. licensed as a mortgage broker under the laws of any jurisdiction,

v. engaged in the business of a financial planner,

vi. engaged in the business of providing financing for the payment of insurance premiums, or

vii. engaged in the business of providing products or services that reduce insurance risk.

6. (1) Subsection 16 (1) of the Regulation is amended by adding “or” at the end of clause (c), by striking out “or” at the end of clause (d) and by revoking clause (e).

(2) Subsections 16 (4) and (5) of the Regulation are revoked and the following substituted:

(4) A member shall ensure that all trust money he or she receives, whether by cash, cheque or otherwise, is dealt with in accordance with the following:

1. The trust money must be deposited into a trust account or invested in an investment described in subsection (5) as soon as practicable after receipt.

2. The member shall not knowingly fail to make the deposit or investment referred to in paragraph 1 within three banking days after the day the trust money is received.

3. Money deposited into a trust account may be subsequently invested and held in trust in an investment described in subsection (5).

4. Subject to paragraph 5, the member shall not, except in accordance with the terms and conditions under which the money was received,

i. disburse any money held in trust or the proceeds from any investment in which trust money was invested, or

ii. withdraw any money from a trust account. 

5. The member may withdraw money belonging to him or her from a trust account and deposit it into the member’s general account.

(5) Trust money may be invested in and held in trust in the following types of investments:

1. Deposits, guaranteed investment certificates and other forms of indebtedness,

i. that are issued by a bank listed in Schedule I or II to the Bank Act (Canada), a trust corporation, a loan corporation, a credit union, the Government of Canada or a Province of Canada,

ii. that have a term not exceeding five years, and

iii. that permit the repayment on demand of the principal sum evidenced by the deposit, guaranteed investment certificate or other form of indebtedness.

2. Treasury bills and other instruments evidencing indebtedness,

i. that are issued or guaranteed by the government of Canada or a Province of Canada, and

ii. that are issued for a period of 30 days or less. 

3. Mutual or pooled funds that invest only in short-term money market instruments.

4. Bankers’ acceptances.

5. Short-term debt securities issued by non-financial corporations for a term of one year or less, but only if the securities have a rating of the highest credit quality or a superior credit quality from the Dominion Bond Rating Service.

7. Section 23 of the Regulation is amended by striking out “may be published in the RIBO Bulletin” at the end and substituting “may be published in any manner”.