FSRA warns about life agent misconduct

By James Langton | February 17, 2021 | Last updated on February 17, 2021
1 min read

The Financial Services Regulatory Authority of Ontario (FSRA) is reminding life insurers about their obligation to oversee compliance by agents who sell their products, including reps with managing general agencies (MGAs).

In a notice to the industry, FSRA said that recently an insurer’s underwriting process detected agent misconduct — agents were altering clients’ “work and study visas during the life insurance application process” — resulting in the agents being terminated.

FSRA said it is reviewing the case “and will take action to enforce the applicable laws and regulations.”

The regulator stressed insurers’ obligation to oversee their agents, noting that they “must take appropriate action if an agent does not meet FSRA’s conduct and suitability requirements.”

Additionally, it said that insurers must exercise due diligence “when delegating functions to managing general agencies, such as agent screening and oversight.”

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James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.