The Canadian Council of Insurance Regulators and the Canadian Insurance Services Regulatory Organizations report that their Industry Practices Review Committee is focused on implementing principles ensuring firms manage conflicts of interest.

On February 13, the CCIR and CISRO released a consultation paper on enhancing and harmonizing best practices. The consultation period formally ended on March 24, with the CCIR Secretariat receiving 44 responses.

“After considering the responses received, CCIR and CISRO recently endorsed the principles outlined in the consultation paper,” it said. “With respect to the product suitability principle, some respondents have identified technical issues and suggested wording changes.”

It added that no further reports or consultation papers are planned. “As for next steps, CCIR and CISRO intend to focus on the consistent application of these principles across the insurance industry,” it adds.

“Each jurisdiction will consider the industry proposals and evaluate the circumstances in its own jurisdictions to determine what, if any, changes are necessary to implement the principles. These changes may include industry initiatives, regulation or a combination of both approaches.”

The CCIR and CISRO agreed to extend the mandate of the IPRC to monitor the implementation of these principles in the marketplace. The objectives of the IPRC will be to: follow-up with industry organizations that have submitted implementation proposals to work out the next steps and timeframes; continue to monitor the achievement of these principles in the marketplace; develop a work plan for an implementation review of insurers and intermediaries to assess whether the principles are being implemented in a harmonized and appropriate manner; implement the work plan; and, propose next steps, if any, for CCIR and CISRO to consider.