Montréal - The Autorité des marchés financiers (AMF) today published the Regulation respecting damage insurance brokerage, the provisions of which will come into force on December 13, 2019, in its Bulletin.
“The main objectives of the Regulation are to maintain a distribution model that reflects the fundamental difference between the roles of broker and agent and to improve transparency for consumers,” said Louis Morisset, AMF President and CEO.
“The AMF has made every effort in recent months to meet with the various stakeholders, obtain their comments and understand their concerns. These substantive and constructive discussions have resulted in a regulation that gives effect to the will of the legislature while supporting the independence of brokers and brokerage firms,” said Frédéric Pérodeau, Superintendent, Client Services and Distribution Oversight.
The AMF published a draft Regulation for comment on July 25, 2019 and also held a public information session on September 5, 2019 to explain the main thrusts of the proposed Regulation. The Regulation published today reflects a number of changes that resulted from the analysis of the comments received. These include:
- Removal of the concept of a hybrid agency; and
- Replacement of the proposal to require the disclosure of the three main insurers and the premium percentages by a requirement to disclose the insurer with which 60% or more of the total volume of risks in personal-lines insurance is placed, as well as this percentage.
Industry representatives may refer to the AMF’s website for more information .
As of December 13, 2019, the AMF will make a multidisciplinary team available to firms to support them in their efforts and in managing the change. The team will consist of AMF staff from the Information Centre, the regulatory development team and AMF Client Services and Distribution Oversight’s certification and registration team. Firms can contact the AMF Information Centre to speak with a team member.
The Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector.
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