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Recent Compliance News

Important cybersecurity readiness guidance

It can be challenging to ensure your practice is up-to-date. We hope that the following information assists you in meeting regulatory compliance requirements, supporting your needs-based sales, and treating customers fairly.

Needs-based sales practices are a requirement. Promoting a customer-focused system through needs-based sales practices includes:

● Maintaining a strong client focus.
● Having processes and procedures that protect the client.
● Conducting and documenting a needs analysis prior to making a recommendation.
● Providing a copy of the needs analysis, and a Reason Why letter. The letter describes your recommendation and how it meets the client's needs.

Code of Conduct - Advisor code of conduct

Our Advisor Code of Conduct sets out Equitable Life's expectations of advisors in dealing with clients and other stakeholders. The Code of Conduct forms part of your contractual relationship with us. Review the Advisor Code of Conduct.

Prior to Conducting Advisor Activities

Anti-money laundering

As a financial advisor, you are subject to obligations under anti-money laundering legislation. For a brief summary of the requirements and Equitable Life's expectations, please see AML / ATF Compliance Overview for Advisors

Canada's Anti-Spam Law (CASL)

Ensure you understand the rules of Canada's Anti-Spam Law (CASL) as they apply to electronic communications with clients and prospective clients.
You must collect consent and include an unsubscribe mechanism - and unsubscribe those who ask. Be familiar with the rules of consent.

Continuing education (CE) credits

It is your responsibility to track your CE credits, and to ensure that you are completing the hours required. Your E&O provider, a regulator or an insurer may ask for the evidence at any time.
Please contact your regulator if you have questions about your CE credit requirements.

CRS and FATCA

CRS and FATCA requires that insurers disclose information to Canada Revenue Agency regarding policies held by non-residents of Canada. The CRA then shares that information with the United States (FATCA) and other countries (CRS) for the purposes of preventing tax evasion. Advisors assist by collecting the required information on applications and other forms.

National Do-Not-Call List (DNCL)

Individuals can register telephone or fax numbers on the DNCL. Tele-markers cannot call these numbers.
Existing business relationships are exempt subject to rules. Personal referrals are NOT exempt - you must query against the DNCL to determine if the number is registered. You need express consent before calling a client who's number is registered on the DNCL.
If you tele-market, you must register annually and follow the rules, and maintain your own DNCL.
Find out more about the National Do Not Call List (DNCL)

Preparing for Sales Meetings

Advisor disclosure letter

The advisor disclosure letter outlines information about the advisor including licensing, companies represented, compensation, conflict of interest, etc.
You can also create one letter that combines the advisor disclosure and client engagement information.

“The Approach” to supporting suitable, needs-based sales – Reference

The CLHIA recommends six supporting elements to make a suitable, needs-based sale. Equitable created this reference presentation, “Ensuring a Compliant, Needs-based Insurance Sale”, that leverages The Approach to explain the requirements for each step, along with the documentation to retain in the client file.
To receive a CE Credit, please complete the course on our learning centre. Please click here to learn more.

Client engagement letter

Typically, you would provide the client engagement letter to a new client after your first meeting.
This letter helps set client expections about what information they will be asked to provide and the type of services and advice the advisor will provide for immediate transactions and the ongoing relationship.
You can also create one letter that combines the client engagement and advisor disclosure information.

During and Immediately After the Sale

Client File Reference

The Client File Reference contains elements that Equitable Life of Canada suggests you retain in your client file for investment, life insurance, or critical illness insurance sales.
It identifies some of the key elements insurers and regulators will be looking for when doing compliance audits. It can help you maintain good records.

Leveraging

All advisors should consider the advice contained in FSCO Bulletin G-16/14 as well as providing their clients with a copy of "Borrowing to Invest". Ontario licensed advisors must ensure their leveraged files will meet the regulator's expectations.
"Borrowing to Purchase Life Insurance Products - Risks and Suitability" - Financial Services Commission of Ontario (FSCO).
"A Guide for Investors: Borrowing to Invest" - Ontario Securities Commission (OSC).

Policy replacement

CLHIA Replacement Disclosure Reference Document
Life Insurance Replacement Form (all provinces except Québec)
Notice of Replacement of Insurance of Persons Contract (Québec)

Reason Why letters

Required for every sale.
Document the recommendation; summary of key facts and needs; amount of coverage and gaps in coverage; suitability of the fee structure (for wealth products); and a call to action.