TORONTO, May 31, 2019 /CNW/ - The Canadian Life and Health Insurance Association (CLHIA) is announcing the withdrawal of Guideline G19 on advisor compensation for group benefits and group retirement services.
"Following extensive discussions with market players, including advisors and their associations, and careful consideration of what we heard, we have decided to withdraw this industry guideline," Stephen Frank, CLHIA's President and CEO said. "Our industry is still strongly in favour of market transparency and plans to work closely with regulators and other stakeholders on these matters going forward."
The guideline's withdrawal is effective today.
As a result, measures related to group retirement services sales that were to begin for new contracts on July 1, 2019, and annual disclosure for existing contracts on January 1, 2020 will not proceed.
Similarly, disclosure measures for group benefits sales, which were to begin on January 1, 2020 for new contracts and January 1, 2021 for existing contracts, will not proceed.
The CLHIA and our member companies remain committed to disclosure. We value the role advisors play in the life and health insurance marketplace. The participation of advisors and their associations is key to the successful development and implementation of conflict of interest management practices for group products and services.
About the CLHIA
Celebrating its 125th year in 2019, the CLHIA is a voluntary association whose member companies account for 99 per cent of Canada's life and health insurance business. The industry provides a wide range of financial security products such as life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance to more than 29 million Canadians. It also holds over $860 billion in assets in Canada and employs more than 155,000 Canadians.
SOURCE Canadian Life and Health Insurance Association Inc.
For further information: Kevin Dorse, Assistant Vice President, Strategic Communications and Public Affairs, (613) 691-6001 / [email protected]