The Investment Industry Regulatory Organization of Canada (IIROC) and the Alberta Insurance Council (AIC) announced on Thursday that they have signed a memorandum of understanding (MOU) that aims to strengthen consumer protection and provide more effective regulation in Alberta.
Under the MOU, which takes effect Feb. 1, IIROC and the AIC have agreed to inform each other immediately when they refuse to register or license an individual who is registered or licensed with the other regulator, or when an investigation is opened concerning an individual who is jointly registered.
IIROC and the AIC will also conduct joint investigations and share relevant records and documents when both regulators are investigating the same individuals.
“Investors in Alberta will be better protected by our increased regulatory collaboration and co-ordination and early detection of wrongdoing,” says Andrew Kriegler, IIROC’s president and CEO, in a statement. “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.”
“With the evolution of the financial services environment in which agents and advisors can offer a range of products and services, there must be greater co-operation and information-sharing among regulators,” adds Joanne Abram, the AIC’s CEO. “Putting this MOU into effect will help to ensure that only qualified individuals are able to work with Albertans to help them with their financial goals.”
“This is an important step forward to protect consumers in Alberta and it creates a more stable investment climate,” says Joe Ceci, Alberta’s finance minister and president of Treasury Board, in a statement. “I know that those operating in financial services strive to meet the highest established standards and act with integrity and this agreement furthers that goal. Albertans deserve nothing less.”
The AIC regulates insurance intermediaries in Alberta in conjunction with the Life, General and Insurance Adjuster Councils. The AIC is the financial and governance arm of this regulatory structure that issues more than 54,000 licences to insurance agents, agencies and adjusters annually.
Thursday’s agreement follows similar accords between IIROC and the Insurance Council of British Columbia, announced in June 2016; the Financial Services Commission of Ontario, in March 2016; and the Chambre de la sécurité financière in Quebec, in November 2015.
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