As a financial advisor you are required to comply with numerous regulatory and industry standards in the course of operating your practice. It is critical for you, your clients and Empire Life that you operate your practice in a compliant manner. The material and links in this section have been included to assist you with your compliance responsibilities. However, the materials and information are not inclusive and it is your responsibility to keep abreast of all regulatory requirements and ensure your practice includes up-to-date compliant practices.
Outline what Empire Life expects of our Distribution Partners when dealing with customers
The Best Practices Handbook is a compilation of rules, procedures and guidelines relating to distribution compliance and market conduct.
Compliance – The Approach
"Serving clients through needs–based sales practices". This industry initiative summary outlines six elements of needs-based selling that should be used to assess and reinforce your own sales practices.
- The Approach
- Financial Needs Analysis Worksheet
- Life Insurance Needs Summary
- Sample Reason Why Letter
- Letter of Engagement
Needs-Based Sales Practices for IVICs
This CLHIA reference document includes a section for advisors which is intended to expand on and provide practical guidance in the area of Individual Variable Insurance Contracts (IVICs) and how “The Approach” should be applied.
At Empire Life, we believe that full written disclosure to clients is an important business practice that all advisors should follow. This section provides the Empire Life communications on Advisor Disclosure, reference materials and sample letters for your use.
If two advisors are working together, both advisors must be coded with Empire Life and disclose on the application for insurance. Fronting occurs when an advisor who was not involved in the completion of the sales transaction with the client, signs the application as the soliciting advisor.
Anti-Money Laundering and Terrorist Financing
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act was introduced to aid in the detecting and deterring of money laundering and the financing of terrorist activities. Advisors, as well as insurance companies, have certain responsibilities including, but not limited to: maintaining client information records, verifying identity of the owner, verifying any third party where the transaction is being made on behalf of a third party, reporting possession of terrorist property and reporting suspicious transactions.
- Reference Document, June 2021
- Reference Document, May 2018
- Anti-Money Laundering & Anti-Terrorist Financing (AML/ATF) Module
- FINTRAC's Guidelines
- Information Circular 2017-12 Amendments to Canada’s Anti-Money Laundering and Anti-Terrorist Financing Legislation
Fair Treatment of Customers
The focus on fair treatment of customer continues to be a top priority for the insurance industry. Treating customers fairly means conducting business ethically and ensuring a culture that places the interest of the consumer at the center of all business decisions.
- Reference Document, July 2018
- Guidance: Conduct of Insurance Business and Fair Treatment of Customer (CCIR/CISRO)
- Treating Financial Services Consumers Fairly Guideline (FSCO)
- Adoption of CCIR / CISRO Fair Treatment of Customers Guidance (AIC)
- Sound Commercial Practices Guideline (AMF)
Protecting Vulnerable Clients
The Autorité des marchés financiers (AMF) recently released A practical guide for the financial services industry – Protecting vulnerable clients. This guide outlines possible courses of action to follow to help clients protect themselves if circumstances make them vulnerable or to assist them in dealing with situations regarding their financial well-being.
Corporate Errors and Omissions Insurance
Empire Life has always been a strong believer in E&O insurance for those working in our industry. This document provides clarification on corporate coverage requirements from Empire Life and the industry.
- Head Office Circular 2008-19 Corporate Errors & Omissions (E&O) Insurance
- Advocis Corporate Partnership Program - Discount for E&O
The protection of personal information is an integral part of doing business at Empire Life. Protecting personal information is important to us and this policy sets out how we collect and manage personal information in a manner that protects the personal privacy of our clients, contractors and employees.
- Privacy Statement and Consent Template
- Build a Privacy Plan
- Guidelines for Meaningful Consent
A privacy breach is the loss of, unauthorized access to, or disclosure of, personal information. Some of the most common privacy breaches happen when personal information is stolen, lost or mistakenly shared.
Disclaimer: Empire Life has prepared the privacy breach template to assist advisors in the creation of their own privacy breach procedures. It is up to the advisor to ensure he/she/it fully understands The Personal Information Protection and Electronic Documents Act (PIPEDA) or other applicable legislation. Advisors are encouraged to educate themselves about their obligations by reviewing PIPEDA and the guidelines provided by the Office of the Privacy Commissioner on their website at www.priv.gc.ca. Empire Life is not responsible for reviewing completed procedures or determining if the procedures are suitable.
Replacement disclosure is required when a customer is considering the purchase of a new life insurance contract that will replace an existing or recently lapsed or surrendered contract.
Life Insurance Replacement Declaration
Quebec Notice of Replacement of Insurance
Guide to preparing an LIRD
Canada’s new anti-spam legislation
The Government of Canada introduced the Anti-Spam Legislation (CASL) to helps protect Canadians while ensuring that businesses can continue to compete in the global marketplace.
Many provincial insurance regulators require advisors to be sponsored by an insurance company under certain circumstances. This comes with many obligations on the part of insurance companies.
National Do Not Call List
Due to amendments to the federal Telecommunications Act, the Canadian Radio-television and Telecommunications Commission (CRTC) has introduced new and revised telecommunications rules and the National Do Not Call List (NDNCL).
To ensure you fully understand your obligations under this new law, please go to http://www.crtc.gc.ca for a complete copy of the Act.
Advisors should have a documented complaint handling policy in place to ensure complaints are handled in a fair and timely manner. Having a documented complaint handling policy is an industry requirement and a mandatory requirement for advisors licensed in Quebec.