CCIR AND CISRO RELEASE STATEMENT ON DSC SALES IN SEGREGATED FUND CONTRACTS
On February 10, 2022, the Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organizations (CISRO) called on insurers to refrain from new DSC sales in segregated fund contracts in line with the June 1, 2022 ban in securities. CCIR and CISRO noted there is a “high risk of poor consumer outcomes” with the use of DSC.
While no regulatory rule changes were announced, CCIR and CISRO expect a transition to a ban on such sales by June 1, 2023.
In addition, the CCIR and CISRO will jointly consult on the use of upfront commissions in sales of segregated funds to better understand what other changes to upfront compensation may be needed to improve consumer outcomes.