Out-of-province insurance advisors looking to get licensed in Ontario will be able to work in the province sooner, ahead of their applications being approved.
The province’s Protect Ontario Through Free Trade Within Canada Act, 2025, which received royal assent in June, removes barriers to labour mobility and to trade in goods and services between the province and other jurisdictions in Canada, including through mutual recognition agreements. Certain amendments related to labour mobility came into force on July 1.
Under the legislation, once an applicant provides the Financial Services Regulatory Authority of Ontario (FSRA) with proof of their valid out-of-province licence, the regulator is required to provide them with a notice of receipt “within 10 business days and in accordance with the regulations.” On receipt of the notice, the applicant is deemed certified for six months and can begin working in the province. (Quebec applicants continue to be subject to additional educational requirements related to the common law.)
The applicant would have the six months to complete their application, and the regulator would have 30 calendar days to approve a completed application after receiving it.
FSRA’s website says 75% of licence applications are processed within 20 business days, which would potentially work out to 26 calendar days. The website also says the regulator is currently processing applications received on or before May 11 — nearly two months ago.
The legislation also makes it an offence for an out-of-province applicant to make a false representation when applying to be licensed in Ontario. A conviction for a first offence of false representation is not more than $25,000.
Rules based on the legislation must still be developed. In an email, Nancy Allan, executive director of the Independent Financial Brokers of Canada (IFB) in Mississauga, Ont., said, “We will watch for these developments with great interest,”in reference to details yet to come.
Given the lack of national harmonization on such things as continuing education (CE) requirements, licensing fees and licensing renewal dates, “true harmonization in the life insurance industry remains a distant hope,” Allan wrote. “[W]e hope that the political will driving the move to reduce trade barriers will lead to some movement on this issue [of harmonization].”
FSRA and the Canadian Insurance Services Regulatory Organizations did not respond to a request for comment.
Still, Allan described Ontario’s legislation and the licensing process changes as “a good first step.” “The majority of IFB members are licensed in multiple jurisdictions, and any move to harmonize licensing and reduce interprovincial trade barriers are welcomed,” she wrote.
In an emailed statement, Advocis said, “We fully support efforts that streamline mobility for advisors,” referring to the Ontario legislation. “Anything that makes it easier for financial advisors to serve Canadians while maintaining strong consumer protections is a step forward.”
Advocis also advocates for national standards — specifically, harmonizing title protection across the country.
In addition to Ontario, the other provinces have implemented, legislated or announced mutual recognition agreements to address barriers to internal trade and labour mobility. And last month, the prime minister and premiers agreed to a 30-day service standard for pan-Canadian credential recognition.
A June report from the Canadian Federation of Independent Business, which rated Canadian jurisdictions on their progress toward eliminating trade barriers, said six provinces including Ontario had established timelines for regulatory bodies to approve registration applications from other jurisdictions. Nova Scotia and Prince Edward Island had the shortest timeline — 10 days — for registration approvals. (While the Yukon also had a timeline of 10 business days, its standard isn’t legislated.)
Also in June, the prime minister and premiers directed the Committee on Internal Trade to implement by December 2025 a comprehensive mutual recognition agreement covering consumer goods.