Independent representatives may not offer financial products and services through a digital transaction space. Only firms and independent partnerships are allowed to do this.

Just one firm—the one responsible for the transactions—must disclose the digital transaction space to the AMF. 

That same firm must also provide the AMF with the information requested at the time of maintenance of registration. 

That same firm must therefore also comply with the requirements of the Regulation respecting Alternative Distribution Methods and the Distribution Act.

As a general rule, if a firm operates several digital transaction spaces, it must disclose each space to the AMF. However, as every business model is different, you are invited to contact the AMF to explain your business model and obtain any assistance you may need with your initial disclosure.

A disclosure must be made to the AMF for each product (or service) that can be purchased on-line. 

For example, if a firm offers three travel insurance products on its digital space, the AMF expects to receive three disclosures, i.e., one for each product. The firm cannot disclose just one generic travel insurance product encompassing the three products.

In general, in insurance, one product corresponds to one policy. The firm must therefore disclose at least as many products as there are insurance policies offered on the digital space.  

The hyperlink must provide access to the digital space. If your digital space requires an access code, please provide the AMF with the information that it needs to log in.

The firm must disclose the names of all the insurers for which it offers at least one product on its digital space.

A firm that, among other things, proposes its own loans to clients must disclose itself as a lender.

The best way to notify the AMF of any change in information is via AMF E-Services.

The AMF asks firms to be meticulous in preparing their annual disclosures.

The information sent to the AMF must be accurate. Submitting inaccurate information is considered improper disclosure and may make the firm involved liable to measures, including penalties. 

Contact the AMF at any time if you need assistance with this matter. 

• “Claims” refers to claims adjustment in damage insurance. The Regulation respecting Alternative Distribution Methods applies to sectors governed by the Distribution Act, including claims adjustment, which is practised only in damage insurance and in accordance with the definition of claims adjuster in section 10 of the Distribution Act.
• The disclosure to the AMF of the number of cases where clients cancelled their insurance contracts is not limited to client cancellationsThe cancellation of an insurance contract involves ending a contract before its term. A contract can be cancelled by the insured or the insurer.  carried out directly on the digital space.
  • The purpose of this section is to ascertain the number of contracts entered into through a digital space that were cancelled.
  • Firms must accordingly disclose the number of cases where a client exercised the right of cancellation referred to in section 64 of the Insurers Act, regardless of how the client cancelled the contract (on-line, by phone or by e-mail). 
     

The purpose of this provision is to protect consumers, who need to be given all the information required to make an informed decision. This means the firm must put measures in place to ensure the information that must be disclosed to a client by a representative is disclosed to the client through the digital space.

The expression “with the necessary modifications” must not be interpreted in such a way as to narrow the scope of a requirement in order to make it easier, or reduce the time it takes, to navigate the digital space.

When transacting over the Internet, consumers must benefit from the same coverage as if they were dealing with a representative.

In other words, in the context of products and services offered via the Internet, where the firm deals directly with a client via its digital space, the firm has, with the necessary modifications, the same obligations as a representative would have in dealing with the client. 

“Provide” the information means deliver, give or return it to the client without the client having to take any action. The client should not have to go looking for the information. It is not enough to make the information accessible or to refer the client to the policy for the information.
 

“Make visible at all times” means clients must see this information at all times, whatever page they are on. The means of contacting a representative is the only element that must be visible at all times on the digital transaction space. 

A digital space that does not use a visual interface is a digital space that makes it possible to interact and enter into a contract with a client in a non-visual manner (i.e., otherwise than through words or images on a website or mobile app).

Examples include business models for the blind or that use a voice assistant.

Firms must make a representative available, but not around the clock. Making a representative available during regular business hours, for example, meets this requirement. 

However, how and when the firm’s representatives will be made available must be made indicated to the client at the start of the process.

The firm must take steps to avoid situations where clients cannot make an informed decision because they have been unable to interact with a representative despite having expressed a need to do so.

Technical support may be provided by a person who is not a representative. 

For more information about activities that may be performed by non-certified persons, refer to the Notice regarding information collection and insurance advice (pdf - 78 KB)This link will open in a new windowUpdated on July 3, 2019"Notice, information collection, insurance advice., which, with the necessary modifications, applies to the on-line process.
 

“Make information readily accessible” means clients can choose to review the information. They must be able to find it easily, in just one or two clicks.

The AMF leaves it up to firms to decide how to make information “readily accessible”. For example, it could be made accessible through a hyperlink or an icon. 

For the purposes of this section, clients may be redirected to a site or document outside the digital space (e.g., an information site or a PDF document deposited in a client portal). In this case, the means of interacting with a representative does not need to be indicated in the external document.

Paragraph (1) :

A firm may display its partners’ logos on its digital space, but this must not cause confusion. 

Clients must know which firm is operating the space. They must understand that the other entities identified are the firm’s partners and are not the ones offering the product or service.

A firm may display a logo or trademark This link will open in a new window that is different from its usual name, provided the name used is disclosed to the AMF and appears in the Register of firms and individuals authorized to practise. 

It must not cause confusion. 

Paragraph (3) :

The registration number (6 digits) was assigned to the firm in AMF E-Services and can be found in the AMF register.

Paragraph (4) :

“Summary of the complaint processing policy” means the firm’s policy. The policy therefore cannot be the policy of a third party.

“Provide” the information means deliver, give or return it to the client without the client having to take any action. The client should not have to go looking for the information. It is not enough to make the information accessible or to refer the client to the policy for the information.

The aim of section 9 of the Regulation respecting Alternative Distribution Methods is to ensure that the information is brought to the attention of the client. Consequently, such information must not be merely “accessible” or “optional” for clients. 

The information does not have to be presented according to a prescribed format. The only requirement is that the language used be clear, readable, specific, not misleading, and not cause confusion or misunderstanding.

The AMF is interested in the process by which firms choose the information provided to clients. 

The AMF believes that clients must receive the same quality of service and the same information when purchasing an insurance product or financial services via the Internet as they would if they were to contact a certified representative. The design of the digital space must reflect this principle.

When clients use a digital transaction space, they must receive the information required to make an informed decision about the product or service they are interested in. The firm’s role is to provide them with that information.

For example, a digital space that asks clients for their age should be able to provide them with any exclusions relating to their age.

In conducting its supervisory activities, the AMF has found that the coverage provided by the products being offered tends to be well presented. However, the associated exclusions and, in some cases, limitations do not seem to be presented with the same meticulous care, even though this information is also required for informed decision-making.

This information must be selected based on sound analysis, not at random.

“Make information readily accessible” implies that clients have the option of reviewing the information. They must be able to find it easily, in just one or two clicks.

The AMF leaves it up to the firm to decide how to make information “readily accessible”. For example, it may be made accessible through a hyperlink or an icon. 

Clients may be redirected to a site or document outside the digital space (e.g., an information site or a PDF document deposited in a client portal). 

The firm must ensure that the specimen made accessible in this way is up to date. As the firm is the one inviting the client to refer to the information, the firm remains responsible for the information provided to the client.

“Recap” the information means deliver, give or return it to the client without the client having to take any action. The client should not have to go looking for the information. It is not enough to make the information accessible or to refer the client to the policy for the information.

The aim of section 11 of the Regulation respecting Alternative Distribution Methods This link will open in a new window is to ensure that the information is brought to the attention of clients and can be reviewed and confirmed by them. This steps also gives the client an opportunity to identify and correct any errors, validate the information provided and make an informed decision. Consequently, such information must not be merely “accessible” or “optional” for clients. 

“Provide” the information means deliver, give or return it to the client without the client having to take any action. The client should not have to go looking for the information. It is not enough to make the information accessible or to refer the client to the policy for the information.

The aim of section 12 of the Regulation respecting Alternative Distribution Methods is to ensure that the information is brought to the attention of the client. 

The expression “through the digital space” or “on its digital space” means that the obligation in question must be fulfilled on the digital space and not, for example, in an external client portal or via e-mail.

The requirements relating to temporary insurance and the right of cancellation apply to transactions “entered into” via the Internet even if a representative intervened with the client on a one-off basis during the process.

The purpose of this provision is to protect consumers, who must have all the information required for informed decision-making. This means that the firm must put measures in place to ensure that the information a representative must disclose to a client is disclosed through the digital space.

The expression “with the necessary modifications” may not be interpreted so as to narrow the scope of a requirement in order to make it easier, or reduce the time it takes, to navigate the digital space.

In the context of products and services offered via the Internet, the expressions “explain information” or “give information” as used in sections 16.7 to 16.9 of the aforementioned regulation must be interpreted in the same manner as “provide” information. The client should not have to go looking around for the information.

“Provide” the information means deliver, give or return it to the client without the client having to take any action. The client should not have to go looking for the information. It is not enough to make the information accessible or to refer the client to the policy for the information.

The firm offering the service must identify itself. The firm must also identify all the lenders whose loans it offers on its digital space.

If a lender that is also registered as a firm offers loans from another lender, both entities must be identified, by their respective roles, on the lender firm’s digital space.

The AMF does not accept pre-ticked boxes.

If confirmation or consent is needed to continue the transaction or move on to another step in the transaction, the firm must ensure that the client confirms or provides consent. The AMF expects digital transaction spaces to be able to meet such a requirement.

However, it is up to the firm to determine when such confirmation or consent is required. It is likewise up to the firm to determine the manner in which the confirmation or consent is obtained.

The section states that an action is required from the client each time confirmation or consent is needed.

A digital transaction space must be able to detect any discrepancies in the information provided by the consumer.

A digital transaction space must be able to validate the information provided by clients and detect, if applicable, any discrepancies or irregularities. 

The following are examples of discrepancies or irregularities:

• The date of birth provided by the client exceeds the maximum age for coverage;
• The client declared that he or she did have any children, yet selected insurance that covers children.

In these types of situations, the AMF considers it preferable to interrupt the transaction. It is also possible to suspend the transaction temporarily so as to warn the client about the consequences of making misrepresentations and the importance of having an accurate and complete picture of his or her situation, for example, and to give the client time to make any necessary corrections.

When does the requirement to suspend the transaction apply? 
For the requirement to suspend the transaction to apply, two conditions must exist: 

1. The representative is unable to interact immediately with a client who expresses a need to do so. 
2. There is a risk that the client will be unable to make an informed decision despite the information he or she has received. It is the firm’s responsibility to assess and manage this risk. 

Accordingly, a client may continue with a transaction even if no representative is available at the time he or she expresses a need for one. However, the client must be able to make an informed decision. If the firm determines that this is not the case, it must suspend the transaction.

• In other words, a transaction that, according to the firm’s analysis, is not risky would not have to be suspended. 
• Depending on the situation, the firm could use a warning such as: “Do you wish to continue the process even though no representative is available at this time?” The firm could also post the hours when its representatives are available. If the client decides to continue the process and enters into a contract through the digital space, the firm could make sure a representative contacts the client within 24 hours.

The firm should also, if a client cannot contact a representative immediately, remind the client of his or her right to cancel the contract within 10 days of entering into it on-line.

Should the suspension be immediate? 

If the firm determines that there is a risk for the client, the suspension does not need to be immediate.

The firm could decide to continue with the process and ask the client all the required questions, and then suspend the transaction before the contract is entered into.

If the firm decides to suspend the transaction the moment a consumer indicates that he or she has a question, the transaction should actually be suspended and the consumer should not be given the option of continuing, even by going back in the history of the pages he or she has visited. 

Firms may, of course, choose to make representatives available at all times.

The obligation set out in section 14 of the Regulation respecting Alternative Distribution Methods is an obligation of means (not one of result) and is based on the firm’s risk assessment.

The firm is responsible for identifying the situations involved based, for example, on type of product or service, type of client, and timing of the client’s request to interact with a representative. 

Where a technical failure could have an impact on the consumer’s decision, the firm must suspend the offer. For example, if the pop-ups in which the product’s coverage and exclusions are explained do not open, the firm should suspend the offer on its digital space. 

This section deals with the traceability of transactions. 

The information that the firm is required to enter in the client file should make it possible to retrace the entire process completed by the client and should include any interactions with a representative. This information is essential for, among other things, determining the extent to which a representative was responsible for a given transaction.

The client record does not have to be a “physical” file. The information entered in the record must be traceable, meaning that it should be possible to reconstruct the record upon request. The information must be accessible at all times but does not all have to be stored in the same place. To the extent that the information is traceable, it can be kept on different servers.