31 May 2018 13:30
Stephen Frank | Photo : Réjean Meloche
The advisors in the collective will be able to directly deliver the information related to the disclosure of their remuneration to their clients, has announced thecanadian Association of insurance companies of persons (CLHIA).
Initially, the guidance document LD19 (G19), Communication of the compensation related to group insurance and pension, was intended to ensure that insurers disclose to policyholders, in a separate statement, annual, any form of direct or indirect compensation that they were paid or provided to intermediaries. The CLHIA established in this guideline for the sake of greater transparency.
The reorientation occurs as a result of the dissatisfaction of many advisors faced by the CLHIA since the beginning of the year. They asserted, among other things, that the disclosure of broker compensation was to be made through the counsellors and not by the insurers.
«Our ultimate goal is to arrive at a fair outcome for all concerned «, said the president and chief executive officer of the CPOMA, Stephen Frank, following the announcement of the change.
A materiality threshold is reasonable and appropriate will be set for the monitoring and the communication of compensation in nature after consultation with the advisors, has also announced the CPOMA.
The CLHIA provides soon-to-depth consultations on G19 with an advisory group involving advisors and insurers.
In addition, the implementation period related to the collective insurance of the G19 has been postponed one year, to January 1, 2020, to allow other changes as needed. In respect of the pension plans, the date of 1 January 2019 is maintained for the communication related to new contracts.