18 January 2018 11:16
Jannick Desforges, Maya Raic, Diane Beaudry and Jean-François Raymond | Photo : Denis Méthot
The Chamber of damage insurance (ChAD) has fiercely defended its role, its responsibilities and its survival on Wednesday in Quebec during the study by a parliamentary committee of bill 141, which could sound the death knell of its existence.
The Québec Finance minister, Carlos J. Leitão, reiterated as soon as he took the floor after the report presented by the CEO of the Chamber, Maya Raic, that he had not decided to «integrate» the two Rooms following a failure.
Supervision is more effective and centralized
«Our motivation, he said, it is essentially that the regulatory regime is more effective and more centralized «. TheAuthority of the financial markets, he argues, will have a view of 360 degrees of the market, as the minister considers important in the world today.
Mr. Leitão has startled the four representatives of the Chamber in front of him, saying that the staff of the House, about thirty employees, will migrate and will be integrated with the Authority. «We’re going to centralize, sum, rather than decrease,» -he said.
Vivid replica of the Room
In a tone polite, but firm, the CEO of the Chamber has immediately replicated to the words and statements of the minister, who refused to talk of «abolition» of the two rooms.
«I appreciate that you said that the 30 employees of the House will be built to the Authority, but this is not what was said in the bill, said Ms. Raic). Moreover, section 559 is absolutely clear, we are talking about abolition, and strictly two transfers of responsibility, namely the regulation on mandatory continuing education, as well as the regulation respecting the ethics and rules of practice.»
The CEO of the Chamber is not at all clear why the minister Leitão wants to abolish the Chamber. She has argued before the elected representatives that it would be very important that there remain the bodies of’autoréglementation first line in which she sees » a first line of defense for the protection of the public in relation to the Authority «. She said this would be a mistake to integrate the activities of the Chamber to the Authority and that it would be difficult to transfer his vision.
Maya Raic | Photo : Denis Méthot
Lost in the vastness of the Authority
A member of the Quebec liberal Party (QLP) has boasted to Mrs. Raic) the virtues of the integration of the Chamber to the Authority, arguing that the latter has more resources to do inspections and perform follow-ups more efficiently. «Don’t you find that this would be a good thing to be able to work together in integrating the House to the Authority,» he asked ?
«No!», replied du tac au tac the CEO of the Chamber : I can’t be more clear than that. The integration is not necessarily always the solution to everything. The specialty of the House is important in the equation. We are 30 employees. Enter in an organization with 780, this is not the 30 that influence the 780. It is the opposite. In this regard, I think the expertise that we have developed would be lost in such an entity as the Authority that is an organisation general practitioner «.
Why keep the’autoréglementation securities ?
Ms Raic said to also do not understand the logic of the government, which retains the bodies of’autoréglementation securities but eliminates them in the insurance sector. «Why, asks ? This is the question that arises. Why it can’t be done in the insurance sector ? «
The disappearance of the House would lead to the abolition of its discipline committee, whose functions will be transferred to the administrative Tribunal of the financial markets (TAMF), which would mark the end of the judgment by the peers, complains of the Room.
To a SRO full ?
Rather than abolish an organization for the protection of the public, the Chamber advocates instead of its migration to a organisme d’autoréglementation (SRO) comprehensive front-line, specializing in damage insurance, which encadrerait representatives and law firms in ethics matters.
Even if the PL 141, which could be adopted in the coming months, provides for the integration of its activities, the Chamber said that they have not had, to date, no contact and no discussion to this effect with the Authority.