Regulatory Alerts2023-05-18
Regulation Respecting the Prohibition on Charging Certain Fees from Holders of Individual Variable Insurance Contracts Relating to Segregated Funds
The Autorité des marchés financiers, approved by the Minister of Finance, issued a regulation prohibiting authorized insurers and related financial service providers from charging contract holders certain fees upon withdrawal, transfer to another segregated fund, or fee option change. The prohibition excludes specifically enumerated management, operating, trading, small policy, insurance, and advisory fees, as well as withdrawal or transfer fees that do not follow a sliding scale based on investment duration. Contraventions trigger monetary administrative penalties of $1,000 for natural persons or $5,000 for other entities, with the regulation taking effect on June 1, 2023.
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