Advisory Regarding Applications for Licences with Product-specific Restrictions |
This advisory is to inform Insurance Council of BC licensees of an ongoing regulatory matter. The Insurance Council has recently identified an issue with the process for granting licences restricted to the sale or adjusting of one or more specific products. A legal review determined that while the Insurance Council has the authority to issue restricted licences under the Financial Institutions Act, the current process requires revision in order to be fully compliant with the Act. As a result, the Insurance Council has ceased issuing new licences with product-specific restrictions. Who’s Affected? There is no disruption to current Insurance Council licence holders. Licence holders of all types can continue to carry out insurance activities in compliance with the terms of their licence.
There will be an impact on new applicants for licences restricted to the sale of specific insurance products. No new applications are being accepted for this type of licence; all pending applications will be closed and application fees refunded. What’s Next? Resolving this matter is a priority for the Insurance Council, and we anticipate that this will involve the creation of one or more new Insurance Council Rules to support a revised restricted licensing process. Given the complexity of drafting a new rule under the Act we do not expect this to be completed before August 2022. Where Can I Find More Information? More detailed information about the current situation is provided on our website. |