1. Carrier panel discussion March 2018
Compliance Days presentation
Goal to make brokers aware of compliance changes/updates – which will likely require some work on your part over the next week, perhaps longer…
Earleen Moulton
VP Compliance, BridgeForce Financial Group

2. Introductions
Thanks to our carrier Compliance experts participating today:
Lynn Johnston, Canada Life
Lisa Lawlor, Empire Life
Colin Simpson/Steve Jennings, Equitable Life
Terry Sims, BMO

3. Question 1 Why is there a focus on advisor compliance?
Why are carriers conducting advisor audits in addition to regulators?
Lynn - CL

4. Question 2
As an industry has anything been done to harmonize the process of carrier audits?
Lisa – slides follow

5. CLHIA Standardized Advisor Practice Review
Compliance review process for use in the MGA Channel
Two Sections
11 standard questions used by all insurers (3 only apply if licensed in Quebec)
Additional questions the Company can ask that they have specific interest in
Attestation to be signed

6. Section 1 Questions
1. Full legal name of the advisor
In which jurisdictions do you currently hold insurance licenses?
If you have answered yes to being licensed in any of the following provinces: BC, Alberta, Saskatchewan, Manitoba, Ontario, Quebec: Please confirm that you completed the required continuing education (CE) hours for your most recent license renewal.

7. Section 1 Questions (cont’d)
Is your errors & omissions (E&O) insurance valid, up-to-date and in-force in all of the jurisdictions in which you operate?
Are your written policies and procedures related to privacy complete and up-to-date?
Are your written policies and procedures related to AML/ATF, including AML/ATF risk assessment, complete and up-to-date?

8. Section 1 Questions (cont’d)
Are your advisor disclosure processes for managing conflicts of interest up-to-date and used consistently?
Have you incorporated needs-based sales practices, including fact find, written needs analysis, “reason why” letter into your business activities?

9. Doing Business in Quebec:
How do you make sure client records are maintained (or kept) in Quebec and/or readily available at the principal office in Quebec?
Do you have a policy for client complaint handling?
Are your policies and procedures available in French?

10. Section 2
“This section is reserved for additional questions an individual Company may wish to ask.
These questions may relate to one of the previous questions or to other matters of interest to the Company”.
Everyone to comment on their Section 2

11. Attestation
I attest that I have knowledge of the information provided in this APR and attest that it, together with any documentation I have submitted as part thereof, fairly represents the policies and procedures I follow in my work as a licensed advisor and is, to the best of my knowledge, true, complete and accurate.

12. Question 3 What is the overall process at your companies?
How do you select advisors?
What’s unique to your company?
Address to all on panel, starting with Equitable.
Earleen will determine order.

13. Question 4
Some companies implemented their process some time ago, while others have just started.
For those who have been doing this for awhile, can you tell us about challenges you may have been having with the process ?    
Start with Terry
Should cover off the positive aspects of the process.

14. Question 5
What are you finding when you do these audits? Any trending gap items? Concerns? 
Start with Lynn.
She’ll capture that information from the CL results and share with this group shortly.

15. Question 6
What do you know or think is coming in the future for carrier oversight?
Do any of you have plans to expand your audits to cover additional areas or expand who gets reviewed ? 
 To support FSCO’s Fair Treatment of Consumer guideline/work, could everyone speak briefly to what they’ve done and are planning to do?
EM – add update on work CAILBA’s doing with G4
Carrier findings in the audit results will dictate future direction; regulator findings/areas of focus too.
Confirm plans to expand the scope of the audits at each carrier; current scope will remain fairly stable for a period of time, i.e. until the ‘newness’ of this wears off.

16. Questions? Have you updated your sales process –
for the Reason Why letters
Disclosure – now 7 steps; BFG template updated
CAILBA 2017