FSRA updates proposed MGA rule

The Financial Services Regulatory Authority of Ontario (FSRA) has released an updated proposal for licensing managing general agents (MGA) in the province’s life and health insurance sector.

Based on feedback during the first consultation, FSRA updated its proposed rule for MGAs to “clarify compliance requirements and minimize regulatory burden with a tiered approach that differentiates obligations,” a release said on Monday.

Industry feedback had suggested greater clarity was needed to delineate the roles and responsibilities of FSRA, insurers, MGAs and agents.

The proposal was developed after regulatory reviews found instances of poor training and supervision of life agents, as well as clients being sold universal life insurance policies they didn’t need.

Saskatchewan and New Brunswick introduced MGA licensing in 2020 and 2023, respectively.

FSRA’s second consultation on the proposed MGA rule runs to Nov. 19. The targeted implementation date for the new rule is June 1, 2026.

The regulator is also consulting until Dec. 19 on an amendment to its fee rule related to MGA licences in the life and health insurance sector.

Michelle Schriver

Michelle is a senior reporter for Advisor.ca and sister publication Investment Executive. She has worked with the team since 2015 and been recognized by the National Magazine Awards and SABEW for her reporting. Email her at michelle@newcom.ca.