One of our recommendations to close that loophole was — absent a national regulator — for more insurance regulators to sign information-sharing agreements with IIROC and MFDA, known as Memoranda of Understanding (MOUs). IIROC told us it was “pursuing more” MOUs with regulators.
That’s evident with today’s announcement that the Insurance Council of B.C. (ICBC) and IIROC have signed a MOU to “enable joint enforcement investigations, strengthen consumer protection and provide more effective regulation.” Specifically, IIROC and ICBC will:
- inform each other when they refuse to register/license a person who is registered/licensed with the other regulator;
- inform each other when an investigation is opened concerning a person who’s dually registered; and
- where appropriate, conduct joint investigations and share relevant information when both bodies are investigating the same people.
“[W]e believe that 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,” said Andrew J. Kriegler, president and CEO of IIROC, in a release. In the same release, ICBC executive director Gerald Matier said, “[…] Council continues to enhance its relationship with other financial services regulators and will be better positioned to identify financial services professionals who may pose a risk to consumers in British Columbia.”
IIROC also has MOUs with the Financial Services Commission of Ontario and the Chambre de la sécurité financière.
Our investigation shows that as of June 14, 2016, six people who’ve been permanently banned by IIROC or MFDA are still authorized to sell life insurance in Ontario.