The Financial Services Authority of Ontario (FSRA) has announced several changes to regulatory requirements to protect the health and safety of both the regulator’s employees and the public from the threat of the COVID-19 pandemic.
FSRA announced changes not only affecting the insurance industry, but also credit unions, mortgage brokers, health service providers, and pension plan administrators. The changes are in line with FSRA’s business continuity plan, which the regulator activated sometime mid-March.
Below are the changes the FSRA has implemented specific to the insurance sector.
According to the FSRA, the invoices issued to insurance brokers for F2020-21 fees have been withdrawn. Brokers will be advised 15 days prior to F2020-21 invoices being reissued. But until the invoices are reissued, FSRA will be deferring collection of any F2020-21 fee assessments or DIRF premiums.
For insurance agents, their deadline for license renewal applications will be extended by 60 days. The regulator said that it will be providing additional information once arrangements have been finalized. These updates will be posted on FSRA’s website, so agents are advised to view the details once they go live.
Insurance companies incorporated in Ontario are still subject to statutory requirements with respect to holding annual member meetings. Under Subsection 159(1) of the Corporations Act, insurance companies are required to hold a meeting of then shareholders and members for the election of directors within the first three months of every year. However, Subsection 125(1) of the Corporations Act allows corporations to hold their annual meeting by teleconference or electronic means – this provision does not apply to Ontario-incorporated insurance companies.
FSRA offered a reminder that Section 297 of the Corporations Act allows a director, shareholder or member of an Ontario-incorporated insurance company to apply to the court for an order allowing the insurance company to hold a meeting of its shareholders and members by teleconference or electronically, particularly if circumstances (i.e. COVID-19) make it impractical for the company to hold the annual meeting in person.
