Receiving Commissions: Registering a Non-Active Firm with RIBO

Non-active firm registrations are required for any firm that:

  • is a partner in a corporate partnership
  • is an underlying corporation in a cluster or management agreement arrangement affiliated with an Active Firm Licensee doing the trading and holding of the insurer contracts
  • is a personal services business where the majority of the issued and outstanding shares of the corporation are owned by one or more Individual Licensee(s) or Active Firm Licensee(s).

In accordance with the by-laws, an Active Firm licensee must designate and maintain a Level 3 Licensee, qualified to be the Principal Broker of the Active Firm Licensee, at all times.


Non-active firms are registered to receive payment for insurance brokering services including, but not limited to, commissions. The sponsoring brokerage that holds the insurer contracts receives the full commission and distributes the commission accordingly. Any trust funds collected by a non-active must be payable to the sponsoring brokerage and deposited into the sponsoring brokerage’s trust account. Non-actives cannot have any company contracts.

If your business does not fall into one of the approved categories, then it cannot be registered as a non-active member firm.

Please email to register your non-active or for assistance to determine which registration class best suits your business.


The non-active member firm’s name must not be advertised on any signage, letterhead, business card, website, or any other form to the public.

If you are holding yourself out to the public, then you will need to change your registration to an active firm registration. Please email for more information.

Please note that under this category of membership, a Non-Active Member Undertaking is required and must be signed by the sponsoring Principal Broker.

The Undertaking waives the requirement to maintain separate Fidelity Bond and Errors and Omissions coverage, file position reports, or maintain a separate trust account or minimum equity requirement, provided that the non-active firm is not identified in any way to the public.

How do I register a non-active member firm with RIBO?

Individuals interested in registering a non-active member firm with RIBO can submit an online application to RIBO. Once RIBO receives the application package, we will send you a payment request for the registration fee.

Application requirements include signing and completing a Non-Active Member application form and Undertaking, and including copies of:

  • Articles of Incorporation
  • E&O policy or Certificate of Insurance from the active firm showing proof that the non-active firm has been added as an additional insured.

License Sponsorship Changes affecting the Non-Active

It is a good practice to confirm whether a potential employee or producer has a non-active firm registered under their name prior to hiring. It is important for you to remind the potential employee or producer to provide RIBO an updated Non-Active Member Undertaking with your signature and proof that their firm is named under the firm’s Professional Errors and Omissions policy.


Principal Brokers should consider reviewing internally whether any commission income is being paid to external corporations and confirm with the owner whether these are properly registered with RIBO.

Frequently Asked Questions (Information for Individuals)

What happens if I am no longer paid commissions?

If you have a non-active member firm registration that you no longer use to collect commissions, please email  to deregister the firm’s RIBO license. Please note, you do not need to dissolve the legal corporation.

Are there other conditions for maintaining a non-active member firm registration?

With the exception of non-actives that form a cluster with an active firm holding the insurance contracts, the majority of equity and voting interest in the non-active must be held by RIBO licensees. 

Non-active member firms must also have an attended mailing address in Ontario, regardless of principal place of business.

The non-active firm must carry its own errors and omissions coverage or alternatively may be added as an additional named insured under the active sponsoring firm’s Professional Errors & Omissions policy and any brokers affiliated with the non-active firm must also be covered under this policy, including under the active sponsoring firm’s fidelity bond or crime policy.

A firm renewal must be completed each year.

Why do I need to renew a non-active member firm registration?

Similar to your individual registration, you are required to submit an annual renewal for your non-active firm registration and pay the applicable renewal fee. Individuals can complete a renewal for their registered non-active firm at the same time as completing their own individual license renewal via the membership portal. Please note, all renewals must be completed by August 31 of each year otherwise the registration may become suspended, or the firm may be deregistered.

Do I need to update Non-Active Member Undertaking if I change employers?

Yes, you need to provide an updated Non-Active Member Undertaking if you change employers. You can email an updated Non-Active Member Undertaking. Please note, you will also need to provide a copy of the active firm’s Professional Errors & Omissions policy that has listed the non-active firm as an additional named insured.

Non-active firms cannot sponsor an individual’s RIBO license, Individuals may only be sponsored by a licensed retail brokerage or active firm.