FSRA issues compliance order against Greatway Financial Inc.
The Financial Services Regulatory Authority of Ontario (FSRA) has issued a compliance order with respect to Greatway Financial Inc. (Greatway). Greatway has consented to the order.
FSRA previously issued a Notice of Proposal alleging that Greatway was committing acts which might reasonably be expected to result in a state of affairs that would constitute an unfair or deceptive act or practice under the Insurance Act, R.S.O. 1990, c. I.8.
FSRA’s concerns were focussed on the training Greatway provided to the life insurance agents contracted with it. FSRA alleged that agents trained by Greatway may provide consumers with information and advice which is inappropriate, inaccurate or misleading regarding the terms, benefits or advantages of certain insurance policies, including universal life policies sold under an insured retirement plan strategy.
Under the compliance order, Greatway will deliver revised training to all of its contracted agents and send existing holders of universal life policies sold by Greatway agents information to assist them in assessing the appropriateness of it for their circumstances. If an existing holder expresses a concern about their policy, Greatway will support the policyholder in the resolution of their concerns with their insurance company.
“It is vital consumers receive information regarding life insurance policies which is accurate and appropriate,” said Elissa Sinha, Director, Litigation and Enforcement. “This compliance order ensures that Greatway trains its agents to do so.”
Greatway is a licensed insurance agent who is contracted by life insurance companies as a Managing General Agency (MGA). MGAs are intermediaries which generally have agreements to find agents to sell insurer’s products.
More information regarding FSRA’s enforcement process can be found here: Enforcement and Monitoring
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FSRA is strengthening consumer protection around Managing General Agencies and working to protect consumers through its monitoring and enforcement activities.
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.
For media inquiries:
Russ Courtney
Sr. Media Relations and Digital Officer
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]