B.C.’s finance ministry Tuesday announced a series of changes to various aspects of financial industry legislation.

The government introduced legislation designed to improve investor protection, harmonize financial services sector legislation in line with the interprovincial trade agreement between British Columbia and Alberta, and to speed up government payments.

The proposed amendments include changes to the Securities Act to provide a legislative framework to govern the Canadian Public Accountability Board’s supervision of auditors and to permit the B.C. Securities Commission to oversee the CPAB.

They also include several changes to make various acts consistent with the Trade, Investment, and Labour Mobility Agreement, which reduced barriers to the free movement of workers, goods, services and investments between B.C. and Alberta. These include amendments to insurance company licensing requirements in the Financial Institutions Act, which will require insurance companies located outside of B.C. to have a licence if they insure property or people based in B.C., unless an exemption applies.

Additionally, the B.C. registrar of mortgage brokers will have new powers to protect consumers and take action against non-compliant mortgage brokers, including those who may be conducting business from Alberta.

In a separate announcement, Finance also introduced amendments to the province’s Insurance Act. Under the proposed amendments, consumers will have a 30-day grace period in which to pay overdue premiums for life and health insurance contracts and ensure their policies remain in force. Consumers will also be provided with a 10-day cooling-off period in which they can rescind a life or health insurance contract.

Also, insurance companies will be required to adopt internal complaint resolution procedures and offer consumers access to ombudsman-type services if disputes cannot be resolved internally. The limitation period in which consumers can make legal claims against insurance companies will be increased to two years from one.

The language of the act has also been strengthened to ensure that fire coverage includes fires resulting from any cause, except those that are specifically excluded by regulation. The amendments will also protect an ‘innocent co-insured’ who may otherwise be denied coverage due to the wrongdoing of another person.

“The proposed amendments will improve coverage for consumers, ensure better access to documents, and enhance dispute-resolution mechanisms,” said Finance Minister Colin Hansen. “They are the result of ongoing review and consultation with consumers, insurance companies, insurance brokers and members of the legal community.”

Other amendments are intended to reduce red tape and improve efficiency by removing unnecessary requirements and clarifying the legislation.

IE