FCAC, IIROC agree to exchange conduct information

Collaboration between the two regulators will reinforce consumer protection

FCAC, IIROC agree to exchange conduct information

Insurance News

By Lyle Adriano

The Financial Consumer Agency of Canada (FCAC) and the Investment Industry Regulatory Organization of Canada (IIROC) have announced that they have signed a Memorandum of Understanding, under which they have agreed to exchange conduct information.

“As regulators, we can no longer work in isolation,” said FCAC commissioner Lucie Tedesco. “Collaborating and sharing information with regulatory partners such as the Investment Industry Regulatory Organization of Canada will help us keep pace with emerging trends and issues so that we can better protect financial consumers.”

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The collaboration between the two regulators is hoped to improve consumer protection by “increasing oversight capacity and facilitating enforcement action against regulated entities and individuals that are not adhering to their market and business conduct obligation,” The Insurance and Investment Journal reported.

“Canadian investors will be better protected by our increased regulatory coordination and early detection of wrongdoing,” added IIROC president and CEO Andrew Kriegler. “We are pleased to partner with FCAC and other regulators across the country to ensure compliance with our rules and to ensure that those we regulate cannot avoid sanctions and continue working in another area of the financial services industry.”

In May, the FCAC published its new Supervision Framework to help regulate financial institutions such as insurance companies. The new framework takes effect on November 01, 2017.


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