Draft regulation providing enhanced rules for disclosure of all costs related to segregated funds
Montréal – The Autorité des marchés financiers (the “AMF”) today published for comment its draft regulation (pdf - 223 KB)This link will open in a new windowUpdated on November 2, 2023Consultation about draft Regulation respecting information to be provided to holders of individual variable insurance contracts relating to segregated funds. respecting information to be provided to holders of individual variable insurance contracts relating to segregated funds (the “Draft Regulation”). The Draft Regulation is intended to enhance performance, guarantee and cost reporting requirements for segregated funds.
“To make informed decisions, consumers need to know all the costs associated with the segregated funds they purchase through their insurers. These products have long-term horizons, and the associated costs have a compounding effect on performance,” said Patrick Déry, AMF Superintendent of Financial Institutions. "The new rules will result in greater transparency and will enhance consumer protection, particularly by making consumers more aware of the rights and guarantees included in their contracts.”
The consultation initiated today follows the publication by the Canadian Council of Insurance Regulators (the "CCIR”) of the Individual Variable Insurance Contract Ongoing Disclosure Guidance (the "Guidance") in April 2023. At that time, the CCIR indicated that it expected each of its members, including the AMF, to adopt the announced framework by local guidance, guideline or regulation.
The comment period will run until December 2, 2023. Comments on the Draft Regulation may be made in writing to the AMF. The consultation materials can be found on the AMF’s website.
Subject to ministerial approval, the Draft Regulation will come into force on January 1, 2026. The first annual statements to incorporate the enhancements will be for the year ending December 31, 2026.
The Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector.
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