compliance puzzle

The insurance industry is calling on the Ontario government to ensure that regulation of titles, such as “financial advisor” and “financial planner,” don’t create added compliance costs.

In a submission to the provincial budget consultation, the Canadian Life and Health Insurance Association (CLHIA) said that it supports the underlying goal of regulating industry titles.

However, it also stressed that, as the government and the Financial Services Regulatory Authority of Ontario finalize the rules, “we would encourage continued collaboration with key stakeholders to ensure that changes protect Ontarians, while not leading to unnecessary regulatory burden.”

It noted that life agents “are already subject to educational requirements and ongoing oversight.”

The CLHIA also recommended that the government enable the launch of new annuity options — variable payment life annuities (VPLAs) and advanced life deferred annuities (ALDAs) — which were proposed in last year’s federal budget.

“In order to provide sustainable, affordable retirement income arrangements for older Ontarians, we encourage the government to monitor and parallel forthcoming federal measures to introduce ALDAs and VPLAs as new income options,” it said.

The submission also called on the government to cut, and eventually eliminate, taxes on life and health insurance premiums.