It's not something all life advisors tell clients, but even travel rewards need to be disclosed, warns one expert, offering a laundry list of breaches.
Regulators are placing greater responsibility on advisors to make sure clients are aware of their options when purchasing insurance.
The comprehensive new disclosure requirements being introduced under the second phase of the Client Relationship Model (CRM2) is making the subject a key area of focus for regulators, said Susan Allemang, head of regulatory and policy affairs with the Independent Financial Brokers of Canada (IFB) at the organization’s fall summit.
Despite CRM2 only applying to the securities industry, insurance regulators are also placing more emphasis on ensuring that clients are receiving sufficient information to make an informed decision when purchasing insurance products.
Advisors need to ensure they are disclosing to clients all of the following information:
• companies you represent;
• compensation you receive, including bonuses and travel rewards;
• conflicts of interest;
• consumers' right to ask for additional information; and,
• client complaint mechanisms.
The comprehensive new disclosure requirements being introduced under the second phase of the Client Relationship Model (CRM2) is making the subject a key area of focus for regulators, said Susan Allemang, head of regulatory and policy affairs with the Independent Financial Brokers of Canada (IFB) at the organization’s fall summit.
Despite CRM2 only applying to the securities industry, insurance regulators are also placing more emphasis on ensuring that clients are receiving sufficient information to make an informed decision when purchasing insurance products.
Advisors need to ensure they are disclosing to clients all of the following information:
• companies you represent;
• compensation you receive, including bonuses and travel rewards;
• conflicts of interest;
• consumers' right to ask for additional information; and,
• client complaint mechanisms.
