Regulatory Alerts2022-12-15
Regulation Respecting the Prohibition on Charging Certain Fees from Holders of Individual Variable Insurance Contracts Relating to Segregated Funds
Issued by the Quebec government, this regulation prohibits authorized insurers and registered insurance representatives from charging contract holders fees upon withdrawal, transfer to another segregated fund, or fee option changes. The prohibition applies unless the contract explicitly permits specific charges, including management, operating, trading, early withdrawal, insurance, advisory, and sliding-scale withdrawal or transfer fees. Contraventions trigger administrative penalties of $1,000 for natural persons and $5,000 for other entities, with the regulation taking effect on June 1, 2023.
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