Regulatory Alerts2014-06-01
Investment and Long-term Insurance Sales Practice 2014
The Commission issued this report to enforce stricter compliance standards following a 2013 thematic review of investment and long-term insurance sales practices, requiring licensees to rectify persistent sector-wide deficiencies. Inspectors identified critical gaps in client fact-finds, vague risk profiling, inadequate explanation of product risks and costs, ineffective peer review documentation, and insufficient transparency regarding conflicts of interest, particularly with in-house solutions and pension transfers. Licensees must now implement robust client information gathering, clearly articulate individual objectives, provide transparent and itemized cost disclosures, maintain verifiable peer review records, and fully disclose all conflicts of interest to ensure advice remains suitable and client-focused.