Permanent Cease and Desist Order against, among others, FFN Operating Corp.

Regarding the Insurance Act, R.S.O. 1990, c. I.8, as amended, (the “Act”) in particular section 441,

 

And regarding a Proposed Cease and Desist Order against, among others, FFN Operating Corp., pursuant to section 441(2) of the Act,

 

And regarding an Interim Cease and Desist Order against, among others, FFN Operating Corp., pursuant to section 441(4) of the Act,

 

And regarding an Order extending the Interim Cease and Desist Order against, among others, FFN Operating Corp., pursuant to section 441(6) of the Act,

Permanent Cease and Desist Order

                                                                  
On September 30, 2014, the Superintendent of Financial Services ("Superintendent") issued an Interim Cease and Desist Order against, among others, FFN Operating Corp. ("FFN").
 
The Interim Cease and Desist Order required, among others, FFN to:
 
A. Cease soliciting any contract or policy of insurance as part of or in conjunction with or as a condition of any service for consumer debt restructuring or mortgage; and
 
B. Cease soliciting, receiving, or collecting payments, premiums, money or anything else of value from any member of the public in respect of any contract or policy of insurance if such contract or policy of insurance was or is to be entered into by a member of the public as part of or in conjunction with or a condition of any service for consumer debt restructuring or mortgage; and
 
C. Mail to all persons in Ontario, to whom any such insurance policies have been issued, a copy of the Cease and Desist Order and provide evidence satisfactory to the Superintendent no later than thirty (30) days from the date of the Cease and Desist Order that the mailing was done.
 
Accompanying the Interim Cease and Desist Order issued September 30, 2014, the Superintendent provided written Notice of a Proposed Cease and Desist Order and the Report of the Superintendent, to FFN pursuant to section 441(2) of the Act.
 
FFN was informed that, if it wanted the Financial Services Tribunal (“Tribunal”) to hold a hearing regarding the proposed Cease and Desist Order, then it had to request a hearing within fifteen (15) days of receiving the Notice.
 
On October 17, 2014, an Order was issued by the Superintendent, extending the Interim Cease and Desist Order pending the decision of the Tribunal.
 
On January 22, 2015, a corporate director or officer of FFN, Mr. Bradley Crompton appeared before the Tribunal on behalf of FFN, and for reasons given that date, the Chair of the Tribunal ruled that FFN did not file a request for hearing within 15 days and in accordance with both the Act and the Rules of Practice of and Procedure for Proceedings before the Financial Services Tribunal. Accordingly, the Chair of the Tribunal ruled that the Tribunal did not have jurisdiction to consider the proposed Cease and Desist Order against FFN.

Order

 
The Superintendent Confirms That, pursuant to subsection 441(7) of the Insurance Act, the Interim Cease and Desist Order issued September 30, 2014 against FFN Operating Corp. is a permanent Cease and Desist Order and that FFN Operating Corp., and any agents, representatives and successors thereof, are ordered to:
 
A. Cease soliciting any contract or policy of insurance as part of or in conjunction with or as a condition of any service for consumer debt restructuring or mortgage; and
 
B. Cease soliciting, receiving, or collecting payments, premiums, money or anything else of value from any member of the public in respect of any contract or policy of insurance if such contract or policy of insurance was or is to be entered into by a member of the public as part of or in conjunction with or a condition of any service for consumer debt restructuring or mortgage; and
 
C. Mail to all persons in Ontario, to whom any such insurance policies have been issued, a copy of the Cease and Desist Order and provide evidence satisfactory to the Superintendent no later than thirty (30) days from the date of the Cease and Desist Order that the mailing was done.
 
Issued At the City of Toronto, January 30, 2015.
 
"Original signed by Brian Mills"
 
 
Brian Mills
Superintendent of Financial Services

To:

 
FFN Operating Corp. (a division of Brite Financial Group)
160 Gibson Drive, Unit #4
Markham, ON L3R 3K1
 
Attention: Mr. Bradley Crompton, Director

And to:    

 
Mr. Douglas Lee
Legal Counsel
Financial Services Commission of Ontario
5160 Yonge Street, 17th Floor
Toronto, Ontario      M2N 6L9