Disclaimer
An order that is made regarding a licence holder reflects a situation at a particular point in time. The status of a licence holder can change. Readers should check the current status of a person’s or entity’s licence on the Licensing Link section of FSRA’s website. Readers may also wish to contact the person or entity directly to get additional information or clarification about the events that resulted in the order.

 

Financial Services Regulatory Authority of Ontario

IN THE MATTER OF the Insurance Act, RSO 1990, c. I.8, as amended (the “Act”), in particular sections 441.2 and 441.3;

AND IN THE MATTER OF Sadrudin Khushal (“Khushal”).

ORDER TO IMPOSE ADMINISTRATIVE PENALTIES

Khushal is licensed as an insurance agent (licence # 94014105) under the Act.

On February 28, 2019, the Superintendent of Financial Services (the “Superintendent”) issued a Notice of Proposal to impose four administrative penalties in the total amount of $8,000 on Khushal for:

  1. furnishing false, misleading or incomplete information to the Financial Services Commission of Ontario contrary to section 447(2)(a) of the Act;

  2. failing to maintain errors and omissions insurance contrary to section 13 of Ontario Regulation 347/04;

  3. making a false or misleading statement or representation in the solicitation or registration of insurance contrary to section 17(c) of Ontario Regulation 347/04; and

  4. committing an unfair or deceptive act or practice contrary to section 439 of the Act.

The Superintendent also proposed to revoke Khushal’s insurance agent licence.

A Request for Hearing (Form 1), dated March 13, 2019, was delivered to the Financial Services Tribunal (the “Tribunal”) in accordance with section 441.3(5) of the Act respecting the Notice of Proposal (the “Request for Hearing”).

Effective June 8, 2019, pursuant to the Financial Services Regulatory Authority of Ontario Act, 2016, S.O. 2016, c. 37, Sched. 8, the Financial Services Regulatory Authority of Ontario (“FSRA”) became the regulator under the Act and the powers and duties previously vested in the Superintendent under the Act were vested in the Chief Executive Officer of FSRA (the “Chief Executive Officer”).

On July 9, 2020, Khushal entered into Minutes of Settlement and Undertaking with respect to the matters in the Notice of Proposal. Pursuant to the Minutes of Settlement and Undertaking, Khushal agreed to pay administrative penalties in the total amount of $5,000.

On August 6, 2020, Khushal withdrew the Request for Hearing, and on August 10, 2020, the Tribunal closed its file in respect of this matter. Therefore, pursuant to section 441.3(7) of the Act, and by delegated authority from the Chief Executive Officer, the Executive Vice President, Market Conduct makes the following order.

ORDER

Administrative penalties in the amount of $5,000 are hereby imposed on Sadrudin Khushal, for the reasons set out in the Notice of Proposal.

TAKE NOTICE THAT Financial Services Regulatory Authority of Ontario will deliver an invoice to Khushal with information as to where and how to pay the administrative penalty.

If Khushal fails to pay the administrative penalty in accordance with the terms of this Order and the Minutes of Settlement, the Chief Executive Officer may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An administrative penalty that is not paid in accordance with the terms of an order imposing the penalty is a debt due to the Crown and is enforceable as such.

DATED at Toronto, Ontario, August 26, 2020.

Original signed by

Huston Loke
Executive Vice President, Market Conduct

By delegated authority from the Chief Executive Officer

Si vous désirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immédiatement à : contactcentre@fsrao.ca.