It is a broker’s obligation to be aware that Canadian privacy legislation establishes a framework for the collection, use and sharing of personal information, By way of example, an individual must receive clear and meaningful disclosure of the purpose for which the information is being collected, with whom it will be shared and how long it may be required. Further, the individual must give their consent to the collection, use and sharing of that information in accordance with that disclosure. Given the sensitive nature of credit information, the broker must make a reasonable effort to ensure that the individual is advised why the information is being requested, what it will be used for and with whom it will be shared. This disclosure must be given in a clear and concise manner so that the individual can reasonably understand what they are being asked to consent to and can give their informed consent on that basis.
It is RIBO’s obligation to investigate complaints from members of the public and we will continue to do that. However, where a broker has received an explanation from an insurer detailing why personal information, such as credit information, is being requested and what it is used for and that broker can demonstrate that he or she provided that information to their client and received their consent on that basis, then it is unlikely that any subsequent investigation of a complaint will result in prosecution against the broker for an act of misconduct.