The push to close regulatory gaps that exist between various segments of the financial services sector took another step on Friday with an information-sharing agreement between the Investment Industry Regulatory Organization of Canada (IIROC) and the Life Insurance Council of Saskatchewan (LICS), which regulates insurance brokers, agents, agencies and adjusters in that province.
The deal aims to facilitate enforcement-related information sharing between the regulators with the aim of preventing advisors who break the rules in one part of the industry simply setting up shop in another part of the business.
Under the Memorandum of Understanding (MoU), IIROC and the LICS will share information about investigations and disciplinary activity. They may also undertake joint investigations in cases in which a rep falls under regulatory scrutiny by both organizations.
“As a public interest regulator, it is important to ensure that rule-breakers cannot simply switch designations without unsuspecting new clients or other regulators being aware of their transgressions,” says Andrew Kriegler, president and CEO of IIROC, in a statement. “This agreement helps to close gaps and enables both our organizations to strengthen consumer protection.”
This is the fifth of these types of arrangements that IIROC has reached with insurance regulators in various provinces over the past few years. It already has MoUs with insurance regulators in Alberta, British Columbia, Ontario and Quebec.
“This agreement not only provides strong consumer protection,” says Roger Sobotkiewicz, chairman and CEO of the Financial and Consumer Affairs Authority of Saskatchewan, in a statement, “it sends an important message in both the securities and insurance sectors that if you are one of the few who harm clients, you will be held accountable.”
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