Disciplinary Process

Each investigation is unique and investigation timelines vary. Council is committed to updating complainants every 60 days on the progress of an investigation or as often as reasonably possible. The person under investigation is updated on the progress as is reasonable in the circumstances.

More information on Council's investigation process can be found here.

Generally, no. Investigations are sensitive matters and Council must protect the privacy of those involved.

If an insurance licensee breaches a requirement, Council can initiate disciplinary proceedings. As licensees have the right to due process, proceedings can take several months.

If Council determines there is public risk in a matter, it can take immediate action against a licensee in the interests of the public.

Yes, if an insurance licensee is subject to discipline, Council will charge investigation costs to the licensee.

More information on Council’s investigation and hearing costs policy can be found here.

If a licensee or former licensee disagrees with an intended decision of Council, the licensee can request a hearing before Council on the matter. Final decisions of Council can be appealed to the Financial Services Tribunal within a strict timeline subject to any appeal application fees of the tribunal.

More information about the tribunal can be found here.

If an insurance licensee or former licensee disagrees with an intended decision of Council (or immediate action taken by Council), a hearing can be requested within 14 days of the licensee's receipt of the Insurance Council's written notice of intended decision.

Council is required to hold a hearing within a reasonable period of time and hearings are open to the public unless exceptional circumstances exist. Hearings are usually held at the Insurance Council’s offices in Vancouver; however, they may be conducted elsewhere in the province or virtually, at the discretion of the Insurance Council.

More information on the Hearing Guidelines.

No, there is no cost to request a hearing. However, licensees are responsible for their own hearing related costs, such as legal fees if they choose to be represented by legal counsel.

Licensees may also be required to pay Council’s hearing costs, which can include legal fees incurred by Council, the cost of a court reporter, and costs incurred by the Hearing Committee.

More information on Council’s investigation and hearing costs policy can be found here.

Council’s lawyer will contact the licensee to arrange a hearing date and discuss the hearing process. A Notice of Hearing is published on Council’s website at least 14 days before the hearing. Hearings may take one or more days depending on the nature of the matter. Hearings are recorded by a court reporter.

Council appoints a Hearing Committee for each hearing. The Committee must consist of at least three Council members. The Chair of the Committee must be a voting Council member and the other members may be a voting Council member or a non-voting Council member. Council members are appointees of the provincial government. They are not employees of Council.

Yes, in many ways it is. It is a formal process where evidence is introduced and licensees and/or witnesses are examined and cross-examined.

More information on Council’s hearing process can be found here.

The Hearing Committee deliberates the matter to make findings based on facts and the law to reach a decision on the presented issue at the hearing. The Hearing Committee then reports its findings and determinations in writing via a report titled Reasons for Decision of the Hearing Committe.

This process usually takes several months. Council’s final decision is then issued in writing to the licensee and published on the Insurance Council website, as well as the Canadian Insurance Regulators Disciplinary Actions (CIRDA) website.

Yes, they can appeal Council’s final decision to the Financial Services Tribunal within a strict timeline subject to any appeal application fees of the tribunal.

More information about the tribunal and its processes can be found here.

To be suitable to hold an insurance licence in British Columbia, a person must meet the Insurance Council’s licensing requirements, in addition they must demonstrate trustworthiness, competence, financial reliability, and an intention to carry on the business of insurance in good faith. These requirements are expected to be met both when applying for a licence and on an ongoing basis once a person has been licensed to engage in insurance activities.

When the Insurance Council encounters a licensee who has been the subject of enforcement action by another Canadian financial services regulator, it has discretion to undertake a review to determine what impact, if any, such enforcement action may have on the licensee’s suitability to hold a licence in British Columbia.

Depending on the circumstances, including if there is a risk of harm to the public, the Insurance Council may decide to suspend, cancel, or restrict the licence with immediate effect, refer the reciprocal enforcement matter to a Review Committee, or take any other action it may deem necessary to protect the insurance clients.

More information on Council's Review Committee process can be found here.

If a licensee’s licence or registration with another Canadian financial services regulator is suspended, terminated, or otherwise ended for a period of time, or if the licensee has been placed under supervision by another Canadian financial services regulator, the Insurance Council may, at its discretion, forgo the Review Committee stage of its investigation process and instead a determination will be made directly by the Insurance Council voting members as to whether similar sanctions should be imposed on the licensee. The Insurance Council’s voting members may also make any other determinations deemed necessary to protect the insurance clients based on the circumstances.

If a licensee’s licence or registration with another Canadian financial services regulator becomes subject to conditions or restrictions due to misconduct that creates a potential risk to insurance clients, the Insurance Council may, at its discretion, forgo the Review Committee stage of its investigation process and instead a determination will be made directly by the Insurance Council’s voting members as to whether similar conditions or restrictions should be placed on the licensee’s licence. The Insurance Council’s voting members may also make any other determinations deemed necessary to protect the insurance clients based on the circumstances.

If it is the Insurance Council’s opinion that no immediate risk of harm to the public is posed that would require immediate action, a licensee who has been disciplined by a Canadian financial services regulator will be given a reasonable opportunity to provide written submissions for the Insurance Council to consider before a reciprocal enforcement determination is made.

However, if the Insurance Council believes that the circumstances pose an immediate risk of harm to the public, a decision may be made without the licensee having an opportunity to respond or provide submissions.

Prior to making a determination on a reciprocal enforcement matter, the voting members of the Insurance Council will consider the circumstances of the discipline imposed on the licensee by the other Canadian financial services regulator, including:

1. the nature of the misconduct that led to discipline;
2. the length of the suspension, termination or supervision period imposed by the financial services regulator;
3. whether the Financial Institutions Act, other legislation, or the Council Rules or Code of Conduct have been breached; and
4. any other relevant context.

If the Insurance Council determines that reciprocal enforcement is appropriate, and it has not concluded that immediate action is required, then a written intended decision will be issued to the licensee, and the licensee will have a period of 14 days in which they can request a hearing to be held, in accordance with section 237 of the Act. If no hearing is requested, the disciplinary action set out in the intended decision will take effect following expiration of the 14-day period.

However, if the Insurance Council determines that the public interest requires immediate suspension or cancellation of a licensee’s licence, it may do so by issuing an order under sections 231 and 238 of the Act, without giving the licensee an opportunity to request a hearing beforehand. In such cases, licensees may request a hearing or file an appeal with the Financial Services Tribunal, but only after the order has taken effect.

More information on hearings and appeals can be found here.