CLHIA revises approach to compensation disclosure

After receiving feedback from advisors, the Canadian Life and Health Insurance Association (CLHIA) is changing its approach to its compensation disclosure for group benefits and retirement services, the association said in a release Thursday.

The CLHIA is making changes to Guideline G19, Compensation Disclosure in Group Benefits and Group Retirement Services. The changes include:

• that advisors should have the ability to deliver the disclosure to the client;
• a reasonable and appropriate materiality threshold will be created for tracking and disclosing in-kind compensation, with input from advisors; and
• the implementation timeline for group benefits is being extended by one year to start Jan. 1, 2020, to allow for enough time to address advisors’ concerns. For group retirement services, disclosure for new contracts will remain Jan. 1, 2019.

As a next step, CLHIA and its members will hold an in-depth consultation on G19 through an advisory group with participation from advisors and insurers.

“We are looking forward to working very closely with advisors in this next phase to ensure that advisors’ concerns are taken into account and that the process for compensation disclosure to plan sponsors works well for all stakeholders,” said Stephen Frank, president and CEO of CLHIA, in a release.

The original guideline can be read here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.