FRSA fined the formerly licensed individual $50K following a hearing
A former licensed Ontario insurance agent has been fined $50,000 by the province’s financial services regulator for operating after his license expired.
The Financial Services Regulatory Authority of Ontario (FRSA) says that Daniel Emerson Tiffin became unlicensed in February 2019 having held a license since 1994. He had been an agent for Industrial Alliance but his contract was terminated in 2018 when he was sentenced to six months in jail for trading in securities when he was prohibited to do by the OSC.
An FRSA investigation and tribunal hearing found that, following the expiry of his insurance agent license, Tiffin had recruited licensed agents to act as ‘fronts’ by signing and submitting paperwork for clients that he had been advising – often for many years – and had persuaded to switch to Canada Life Assurance Company through accounts with the recruited agents. Some clients had to pay significant deferred sales charges for switching, totalling more than $196K.
The commissions paid by the managing general agency to which the new agents were contracted totalled $300,000 of which Tiffin received $150,000.
Tiffin requested a hearing by the Financial Services Tribunal however the decision notice shows that this was not a smooth process due to incorrect submission of documents, refusal to answer certain questions, and a subsequent hearing taking place in Tiffin’s absence.
As well as the financial penalty, the FRSA has prohibited Tiffin from acting as an insurance agent, from collecting commissions, directly or directly, on insurance business in Ontario, and from engaging in the business of insurance in Ontario.
The FSRA has separately taken enforcement action against the fronting agents including licence revocations and administrative penalties.
"Consumers deserve advice from educated and licenced insurance professionals who act with integrity," said Elissa Sinha, Director of Litigation & Enforcement at FSRA. "As a regulator, we will take action to uphold these high standards in order to build the public's trust and confidence in the insurance industry."
