The Canadian Life and Health Insurance Association (CLHIA) has responded to a recent decision by the Supreme Court of Canada, which dismissed the leave for appeal applications of Atwater Investment LP, Ituna Investment LP and Mosten Investment LP – limited partnerships that were involved in a controversial case wherein they purportedly used life insurance policies as investment vehicles.
On March 10, 2021, the Saskatchewan Court of Appeal ruled that 2018 provincial regulations prohibited life insurers from accepting deposits unrelated to insurance coverage. The three limited partnerships embroiled in the contentious deposit scheme case then filed for leave to appeal with the Supreme Court.
But on November 04, 2021, the Supreme Court dismissed all three applications for leave to appeal.
CLHIA denounced the actions of the limited partnerships, saying that their actions ran contrary to Canada’s regulatory framework, which separates and makes a clear distinction between the banking and insurance businesses. The association also praised the Supreme Court for its judgment on the matter.
"In the interest of protecting consumers, many other provinces including Ontario, Prince Edward Island, Alberta, New Brunswick and Nova Scotia have introduced legislation to provide similar clarity and reinforce the separation of banking and insurance," said CLHIA president and CEO Stephen Frank. "Millions of Canadians rely on the life and health insurance industry to provide life, disability, and health insurance as well as for their pensions and retirement savings. We are pleased that governments continue to support a solid regulatory framework that protects consumers and allows the industry to serve Canadians."
