In an Advisor.ca investigation released last June, we highlighted how reps who’ve been permanently banned by IIROC or MFDA can still be authorized to sell life insurance.
One of our recommendations to close that loophole was for more insurance regulators to sign information-sharing agreements with IIROC and MFDA, known as Memoranda of Understanding (MOUs).
IIROC already has MOUs with the Ontario, Quebec and B.C. insurance regulators, told us it was “pursuing more” MOUs with regulators.
The next in the list? Alberta.
As of Feb. 1, 2017, IIROC and the Alberta Insurance Council (AIC) will immediately inform each other when they refuse to register/license an individual who is registered/licensed with the other regulator, or when an investigation is opened concerning anyone who is jointly registered. IIROC and the AIC will also, where appropriate, conduct joint investigations and share relevant records and documents when both regulators are investigating the same people.
Read: How banned IIROC and MFDA advisors can still sell insurance
In a release, Andrew J. Kriegler, president and CEO of IIROC, spoke about preventing regulatory arbitrage. “As a public interest regulator, we believe that investors must be protected from disciplined individuals who seek to avoid sanctions and continue working in another jurisdiction or a different part of the financial services industry,” he said.
AIC CEO Joanne Abram agreed “there must be greater cooperation and information-sharing among regulators” so only qualified people can advise on investments and insurance.