As an insurance agent licensed by the Financial Services Commission of Ontario (FSCO), you should be aware that FSCO has new powers to levy Administrative Monetary Penalties for contraventions of legislation or regulations.
E-Blast Notice: Due to technical issues, some recipients may have received this communication from FSCO with two subject headings. The intended subject is Insurance Licensees and Administrative Monetary Penalties. Please disregard any reference to Re-licensing in the subject line. We apologize for any confusion and thank you for your understanding.
What is an Administrative Monetary Penalty?
An Administrative Monetary Penalty (AMP) is a financial penalty imposed by a regulator, such as FSCO, instead of a court, for contraventions of law. AMPs encourage regulatory compliance and prevent financial benefit from violations.
When could an AMP be applied?
AMPs can be imposed for breaches of orders, undertakings and licence conditions, as well as for contraventions of statutory provisions listed in the AMP regulations, such as:
- Failure to meet continuing education requirements
- Failure to meet errors and omissions insurance requirements
- Failure to notify FSCO of address change
- False billing practices
- Engaging in prohibited acts and/or practices
Are there new compliance requirements?
No. AMPs do not create new compliance requirements; they allow FSCO the option of applying AMPs in addition to or in replacement of other penalties.
More information on FSCO’s website