On June 16, 2015, the minister of finance (Québec) (the
"minister") published a report on the application of the
Act respecting the distribution of financial products and
services (the "Report"). This Act establishes the
regulatory regime that applies to representatives selling insurance
and investment products such as mutual funds in Québec.
The Report can be accessed on the website of the minister here.
In the interest of keeping the regulatory framework relevant and
robust, the Report proposes several recommendations which are:
Draw on the recommendations of the Canadian Council of
Insurance Regulators to put in place a flexible legal framework
that will enable insurers to offer their products
Establish a legislative framework for distribution without a
representative that applies directly to insurers, which must ensure
that the persons offering the insurance products to the public (now
called distributors) abide by the rules.
Examine all approaches to ease the regulatory and financial
burden of registrants, while maintaining adequate oversight of the
distribution of financial products and services.
Make provision for a consumer to be compensated when he is the
victim of a fraud perpetrated by a certified representative even if
the claim concerns the sale of products that the representative was
not authorized to offer.
Call upon industry representatives in the decision-making
process of the Fonds d'indemnisation des services
financiers, a fund providing industry compensation to the
In respect of the third recommendation and the dual oversight
which currently applies in Québec to the offering of
insurance and mutual fund products, the minister poses a series of
questions for which feedback is sought.
We look forward to further discussing the implications of this
Report with industry participants and encourage them to send their
comments to the minister prior to the deadline of Sept. 11,
At Gowlings we have assisted industry participants in applying
the regulatory requirements of the Act respecting the
distribution of financial products and services, and in their
dealings with the Autorité des marchés financiers and
the applicable self-regulatory organizations.
1. In a previous article we wrote about the
recommendations made by the AMF to insurers offering insurance
products online in the context of the current regulatory
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general guide to the subject matter. Specialist advice should be
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