HUB Financial has noticed a recent increase in the number of sales which have been conducted by advisors without having the appropriate licence in place.

Sales are not authorized until the licence is issued.
Submission of a licence application or licence renewal to the provincial regulator does not mean the advisor is authorized to conduct business. Advisors should wait until the active licence appears on the Council web site or the official licence document is received. Sales cannot be made PRIOR to the issue date of a valid licence by the provincial regulator. Where this occurs, the Insurer will deem the sale invalid and it will need to be re-visited with your client at a later date or by another licensed Broker. Compensation will not be paid for sales conducted prior to the effective date of a licence.

Brokers must hold the appropriate licence in the province where the application is signed. 
In today’s digital environment, advisors can provide advice and conduct sales to customers that are not located in the advisors province of residence and where licensed. Where sales are completed in a non-face-to-face basis, the sale is considered to be conducted where the client resides. Advisors must decline to submit business for clients in provinces where they are not licensed. 

Insurers are quickly moving toward a position where the advisor must be licensed where the sale is conducted and the client resides. Policy conversions are considered new sales and the Broker must hold the appropriate licence. 

We encourage you to place recurring reminders in your calendar for all licence and E&O renewal dates. Don’t get caught without appropriate compliance certificates in place! Please ensure that you submit a copy of your updated licence and E&O renewal certificates to [email protected] on an annual basis. 

Remember, 
Good Business is Compliant and Compliance Matters!