29 August, 2017 11:30
Photo : Freepik
The work of the canadian Council of regulators of insurance (CCIR) in respect of segregated funds should result in significant changes in the rules, so that customers better understand the costs and performance of their investments in the segregated funds.
The segregated funds were, indeed, part of the priorities defined by the CCIR in its strategic Plan 2017-2020 presented last June, a document which specifies the priorities and initiatives of the CCIR for the next three years. And among the priorities of the CCIR was including the revision of the regulatory framework for segregated funds.
Analysis of comments received
Since the end of the consultation, the CCIR has analyzed the comments received and continued to collaborate with key stakeholders on the key issues relating to segregated funds. It account as well to publish in the fall a position statement outlining its recommendations and expectations.
The regulator will examine such issues as the transmission of fund facts for subsequent operations, the method of classification of risk, oversight of underwriting, analysis based on the needs, update customer records and the obligations of product knowledge.
A consumer survey
Moreover, the CCIR will publish an information document type, which will indicate the minimum information to provide on the performance and the costs. This document should be published in the winter of 2018, after conducting a survey with consumers.
«Ensure that customers have the information they need to understand not only the performance of the segregated funds but also all the associated costs are of high importance for us «, said Anatol Myid, chairman of the working Group on the segregated funds.