Regulatory Alerts2022-12-15
Draft Regulation respecting the Prohibition on Charging Certain Fees from Holders of Individual Variable Insurance Contracts Relating to Segregated Funds
The Autorité des marchés financiers (AMF) has issued a draft regulation prohibiting insurers and registered firms from charging deferred sales charges and certain other fees to holders of individual variable insurance contracts relating to segregated funds upon withdrawal, transfer, or change of purchase option. Applicable to contracts entered into as of June 1, 2023, the measure aligns with fair treatment of clients objectives by eliminating sales practices that impose unnecessary costs on policyholders. The AMF reserves the authority to levy monetary administrative penalties against non-compliant insurers and anticipates the regulation will take effect on June 1, 2023 following ministerial approval.
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