Annual Meeting 1999 - November 4, 1999
President's Address
Lorie Guthrie Phair
I'd like to begin by saying thank you for giving me the opportunity to serve as your RIBO President for the past year. It certainly has been an exciting and eventful year, filled with interesting challenges, information sharing and reflection as we continue to reevaluate the roles and responsibilities of the independent insurance broker.
In keeping with our mandate, of enhancing the professionalism of the insurance broker in Ontario, while at the same time ensuring that the public is adequately protected, it's essential that we stay on top of industry issues on both a provincial and national level.
At the provincial level RIBO continues to meet regularly with representatives of the Financial Services Commission (FSCO) to discuss issues dealing with market practices. FSCO is presently putting together a discussion paper on inducements - a topic all stakeholders will soon get the opportunity to comment on.
Currently, FSCO has decided to fast-track proposals for two main issues: sole occupation and ownership and working groups will be established to look at other issues. On sole occupation, the general consensus from our members' forums was that insurance brokers should be able to sell financial products. However, if the sole occupation requirement is removed altogether, there was concern raised that there could be a conflict of interest and undue influence placed on the consumer.
On the topic of removing current ownership requirements, the general feeling among brokers was that current requirements should be removed - provided that the principal broker is responsible for all RIBO requirements. We'll keep you updated as the process moves along.
At the national level RIBO is working with other provincial regulators and IBAC to establish common standards for broker skills and that project is on-going. We're also starting to look at common
standards for errors and omissions insurance - most western provinces don't have mandatory E & O requirements yet, so Ontario will likely be looked at as a model.
As far as internal issues at RIBO are concerned, it has been a really good year. Financially, there weren't any unusual regulatory issues, or unforeseen situations that created more that the usual demand on our resources. This was reflected in our operating statements, which once again shows a surplus. Combined with efficient operations, we were able to lower broker firm fees for the 1999-2000 year. Also, as a result of our surplus, we were able to offer a substantial one-time-only reduction of $50 to firms and individuals that made early payments by August 31.
As part of our communications initiative, I am happy to report that the redesign of our Website is now complete. It's now much more user friendly. Broker registration can easily be checked on the online database. Please visit the site and let us know what you think.
At this time in our constantly changing technical environment, I would be remiss in not mentioning the Y2K issue. I am happy to report that we have been working with the E & O Insurers and virtually all brokerages have taken the appropriate steps, and those who haven't are working on it.
Now on behalf of all RIBO Council and staff members, I'd like to welcome Hassan Jaffer as a new public member to Council. Appointed in May of this year by the Lieutenant Governor, we look forward to his involvement over the next few years. At the same time, I'd like to say a special thank you to Marguerite Jackson for her six years of dedication and service on RIBO Council. Her wisdom and guidance will be greatly missed.
Thank you for taking the time to attend today. I would like to thank Jeff Bear, RIBO staff and my fellow council members for their support over the last year. I am confident that RIBO will continue to be successful in meeting the regulatory challenges of the years to come.
Sincerely,
Lorie Guthrie Phair
Notice: Prepaid Legal Service Products
As of this printing, the latest information that RIBO has received from the Financial Services Commission regarding contracts for prepaid legal services is that these products are insurance contracts. Accordingly, these products may only be distributed by licensed agents or registered brokers.
However, developments that may change this status are occurring but were not finalized at press time. RIBO will update this item in the "Hot Issues" section of our web site as developments occur , or alternatively you can contact Sharon Bentley by phone(416)365-1900 or by e-mail sharon@ribo.com or Lilian Croucher by phone(416)365-1900 or by e-mail lilian@ribo.com for the latest information.
Art Despard
Jack Baizana
