The Autorité des marchés financiers (AMF) is currently surveying the insurance industry on the application of the Sound Commercial Practices Guideline (Guideline) that was published and came into effect in June 2013. This Guideline is unique to Quebec and applies to all insurers governed by Quebec's Act respecting insurance. It sets out the AMF's expectations regarding the legal requirement of insurers and financial institutions to adhere to sound commercial practices by developing strategies, policies and procedures based on the nature, size, complexity and risk profile of their activities.
In the coming days, insurers and financial institutions will receive a letter from the AMF asking them to complete a questionnaire consisting of a self-assessment of their commercial practices and the way the Guideline is being applied to, and incorporated into, their activities. The AMF is also asking them for additional information, particularly regarding the distribution and marketing networks for their products.
This survey is part of an AMF prudential oversight process intended to verify industry practices and get an overall picture of the progress that has been made by insurers and institutions in implementing policies and procedures in order to comply with the Guideline. According to the AMF, the questionnaire does not have a coercive purpose but instead involves a study being conducted by the AMF to enable insurers and financial institutions to identify areas for improvement so they can meet the expectations of the Guideline.
Insurers and financial institutions must complete the self-assessment questionnaire and provide the requested additional information online at http://www.lautorite.qc.ca/en/forms-insurance-and-deposit-institutions-pro.html by September 30, 2014.
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