CLHIA-ACCAP

4 model is contemplated, some provinces may choose to combine forces for efficiency purposes to establish a larger council, such as in Atlantic Canada.) Councils' authority should include the following: • Setting pre-and post-licensing proficiency standards • Licensing insurance advisors • Investigating advisors and taking disciplinary action, such as suspending or revoking licences and imposing fines • Auditing advisors on a risk-based basis • Addressing customer complaints involving advisors Recommendation 3: We recommend that all jurisdictions be represented with an Insurance Council structure of regulatory oversight, and that duplication and inefficiencies with existing structures be avoided. Advisor Code of Conduct Some provinces have Codes of Conduct for advisors, while others do not. We believe there is value in having a consistent standard across the country and that CISRO, in its national coordination role, is well positioned to develop such a standard. Recommendation 4: We recommend that CISRO establish a Code of Conduct for licensees that can be adopted by each jurisdiction. Customer complaints involving advisors With respect to addressing customer complaints about advisors, provincial insurance regulation allows for sanctions to be taken against advisors, but does not provide the authority for regulators to recommend an advisor to pay restitution to the customer. This contrasts with the powers accorded to the OmbudService for Life and Health Insurers, to which life and health insurers belong. To remedy this imbalance, consideration could be given to expanded powers for Councils in this area, so that they could recommend restitution by advisors to customers. Any recommendation for restitution should be voluntary, as is the case with Ombudsman systems that apply to other types of advisors (e.g., Ombudsman for Banking Services and Investments). "Ethical walls" would need to be established between this and the regulatory functions of the Council. Recommendation 5: We recommend that the power of Councils be expanded with respect to addressing customer complaints about advisors so that, in addition to taking sanctions against the advisor, Councils could recommend restitution by advisors to customers, as appropriate. We note important new initiatives, like CCIR's new Framework for Cooperative Market Conduct Supervision in Canada and national databases for advisor screening, contracting and compliance, will further strengthen national coordination and increase the tools available to each Council.

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