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Internet sales : the APCSF wants a warning to consumers


Alain Thériault

January 10, 2018 13:30

Flavio Vani

Adopted as it stood, the bill 141 will result in an increase of offers of simple products on the Internet without guidance, believes theAssociation of professional advisers in financial services (APCSF).

The association even recommends that the minister impose on the distributors to place a prominent warning on the entry on a website. This warning addresses the risk of acquiring an insurance product without the advice of a registered professional. The APCSF further requests that the independent consultants must adhere to and carry a specific title.

Filing of a memorial

Absent guests to the special consultations and public hearings on the draft law n° 141, the Association of professional advisers in financial services (APCSF) do not despair to call. It has made its position known by a memory that his director general, Denis Gobeil, hand delivered to the national Assembly, on the 8th of January. It will hold a press conference to explain that, on January 15 in Montreal.

In his Proposal of the Association of professional advisers in financial services (APCSF) on the draft of act 141 in order to safeguard the financial advice for the middle class, the APCSF wants a direct offer of financial products has an explicit warning, according to which it only applies to consumers.

Important consequences

Her thesis proposes that the manner of the warnings displayed on cigarette packages, online purchases, specify the consumer that the purchase of insurance products without the advice of a registered professional, which performs a complete analysis of his personal and financial situation, there are risks » that could lead to material impact on its financial security and for that of his family «.

«If you’re not a smart consumer in matters of insurance, thefinancial markets Authority recommends that you consult with a professional duly accredited for the distribution of insurance products «, we read.

«A danger it is incredible for the consumer»

«The sale via the Internet without a representative represents a danger amazing for consumers,» said Flavio Vani, president and spokesperson of the APCSF, in an interview with the Journal of insurance. Insurance products are not only complex in terms of readability of contracts and guarantees, but also because of the regulatory environment, including taxation. «

«Of entrepreneur-clients who would not have thought of naming irrevocable beneficiaries at the time of buying a policy online might have problems in the event of a bankruptcy, for example. When you don’t have advice, such things can happen. Québec society has appauvrira with an automation that removes the board. It is a bet very risky «, he added.

Mandatory membership

The APCSF also expresses 20 other requests to the minister, including one that would make the APCSF a rite of passage for all self-employed workers in financial products and services (independent consultants) are governed by the Chambre de la sécurité financière.

«These self-employed workers do not have a spokesman to defend their interests. We can defend them by a work that will benefit the whole community. It is therefore important that all these advisors are paying for this work, » said Mr. Vani.

As a professional individual

He also wishes that the professional is recognized by a professional designation in particular, which would allow them to distinguish advisers to the status of an employee. The memory indicates that the APCSF would be responsible for the training of the representatives and management as an advisor in the financial services authorized for the self-employed.

In another application, The APCSF goes on to recommend the end of the monopoly enjoyed by theInstitut québécois de planification financière (IQPF) for training in financial planning, which involves a cost prohibitive for continuing educational units.

Re-enable the incorporation in mutual funds

The APCSF also wishes to see introduced the possibility for independent workers to incorporate as other professionals, ensure that the draft act 141 does not currently. Thus, it called for the return of the brokerage, mutual funds and registered education savings plans (RESPS) prescribed by the act respecting the distribution of financial products and services, so as to clarify the right to block transfer of the practices of the representatives between the dealers, as it had been going on before 2009.

Return to order

First of his 20 requests, the APCSF request to become the professional association of independent consultants. «We can’t deny our memory of September 2015 who made this request. If the Chamber and the ethics need to be reformed, we want a professional order, that the advisers are not without guidance, » said Mr. Vani. He considers this order important, in a context where adopted, the draft law 141 is disadvantageous both to consumers and independent consultants.

«The professional status of the financial advisor disappears with bill 141, and is reduced to the role of a seller with qualifications that will gradually decrease with the years,» writes the APCSF in his memory.

She is also concerned that under the bill, the financial advisor is not to become a person connected with a firm is no longer obliged to collect the information in person on clients. Results ? Increase in supply targeted products simplified without advice, by télémarkéting and virtual presentation, including the robots-advisers ; decrease in the number of certified professionals and difficulty for the consumer to have recourse against an institution rather than an advisor.

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