Consumers would be allowed to buy insurance directly from credit unions and trust companies, and B.C. credit unions would be able to operate outside the province, under regulatory reforms proposed by B.C. financial services companies.

The proposals were made to the B.C. Ministry of Finance as part of the government’s deregulation initiative and were developed during an extensive consultation process that began in July 2002.

To date, government has received more than 20 submissions from the financial services sector with ideas for improving the way they do business in B.C.

The finance ministry says the proposed changes focus on increasing competition and consumer choice as well as on reducing the regulatory burden for the financial services sector by eliminating regulatory duplication and harmonizing overlapping requirements with other jurisdictions.

Changes outlined in a consultation paper include: streamlining the solvency regulation of extra-provincial financial institutions, those that operate in B.C. but are incorporated outside the province, by relying more heavily on the regulator in the jurisdiction of incorporation, as well as harmonizing market conduct regulation with other jurisdictions; eliminating the provincial regulation of trust companies that take deposits, and relying on the federal government for this kind of regulation; allowing B.C. credit unions to operate outside of the province, extra-provincial credit unions to operate in B.C. and providing more options for credit union corporate structure; and, permitting credit unions and trust companies to sell insurance directly, rather than through an insurance agency subsidiary.

Submissions to the ministry are due by Dec. 12.