Insurance agent faces enforcement action for failing to respond to investigation

A regulator sent inquiries related to multiple allegations

Insurance agent faces enforcement action for failing to respond to investigation

Insurance News

By Mika Pangilinan

Ontario’s financial services regulator has issued a notice of proposal detailing its intent to impose sanctions against insurance agent Noella Caspersz for failing to respond to inquiries related to allegations of churning, fronting, and product-client suitability.

FSRA said it proposes to refuse to renew Caspersz’s insurance agent licence and impose an administrative penalty of $50,000. 

Caspersz’s name came up in an investigation involving two former agents who took part in “unlicensed insurance activity,” where one agent shared commissions in exchange for clients provided by the other. The Financial Services Regulatory Authority of Ontario (FSRA) identified the individuals as DT and YJ. 

 According to FSRA’s notice of proposal, Caspersz was identified as one of several agents who signed paperwork and served as the agent-of-record for the insurance clients that DT would advise. A contractor who worked for DT provided investigators with documents showing e-transfers totalling $7,884 from Caspersz to DT.

 Earlier this year, Canada Life submitted a life agent reporting form regarding the “business relationship” between DT and Caspersz. The insurer later confirmed to FSRA that six of Caspersz’s clients were former clients of YJ. Caspersz sold nine policies, and a tenth was sold by YJ and serviced by Caspersz.

 With the information provided to FSRA, Caspersz was investigated for churning, fronting, and product-client suitability. She failed to respond to two inquiry letters asking for information.

 “Caspersz was required to respond to the inquiries in two manners: by providing the documents and information required, and by attendance at an interview to provide information verbally,” said FSRA’s notice of proposal. 

“Caspersz was given multiple extensions and opportunities to answer yet failed to do so. To date, she has not provided any of the information required and has not attended an interview or indicated when she will be able to do so.”

 Caspersz has requested a hearing before the Financial Services Tribunal regarding the FSRA’s proposal. 

 What are your thoughts on this story? Feel free to comment below. 

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