The Office of the Superintendent of Financial Institutions has published its ruling establishing that a bank’s website is not considered a branch, and therefore can be used to promote insurance products.

OSFI ruled that a “branch” is defined in the Bank Act, both in English and French, as physical premises. It also points out that there are numerous provisions in that statute that specifically distinguish a website from being a branch. Therefore, it concludes that, as far as banking regulations are concerned, a bank website is not a bank branch.

“As a result, a bank may, on its website, promote in Canada any insurance policies or any insurance companies, agents or brokers,” OSFI says. It adds that while the promotion of insurance products includes activities in furtherance of the sale of insurance coverage, it notes this does not encompass “committing an insurance company to the provision of insurance coverage”.

IE