D-9.2, r. 7 - Regulation respecting the issuance and renewal of representatives’ certificates

Updated to 1 April 2013

This document has official status.

chapter D-9.2, r. 7

Regulation respecting the issuance and renewal of representatives’ certificates

Act respecting the distribution of financial products and services

(chapter D-9.2, ss. 200 and 203).

CHAPTER I SECTORS, SECTOR CLASSES, TITLES AND TITLE ABBREVIATIONS

DIVISION I INSURANCE OF PERSONS

1. A representative authorized to act in the insurance of persons sector uses the title of “financial security advisor”.

The authorized sector class of this sector is “accident and sickness insurance”.

M.O. 2010-04, s. 1.

2. A representative authorized to act in the “accident and sickness insurance” sector class may only offer accident and sickness insurance products and advisory services, excluding any other insurance of persons product, even if offered as an endorsement to an accident and sickness insurance contract.

He uses the title of “accident and sickness insurance representative”.

M.O. 2010-04, s. 2.

DIVISION II GROUP INSURANCE OF PERSONS

3. A representative authorized to act in the group insurance of persons sector uses the title of “group insurance and group annuity plans advisor”.

The authorized sector classes of this sector are “group insurance plans” and “group annuity plans”.

M.O. 2010-04, s. 3.

4. A representative authorized to act in the “group insurance plans” sector class may only offer products and advisory services pertaining to group insurance plans.

He uses the title of “group insurance plans advisor”.

M.O. 2010-04, s. 4.

5. A representative authorized to act in the “group annuity plans” sector class may only offer products and advisory services pertaining to group annuity plans.

He uses the title of “group annuity plans advisor”.

M.O. 2010-04, s. 5.

DIVISION III DAMAGE INSURANCE

6. A representative authorized to act in the damage insurance sector uses the title of “damage insurance agent” or “damage insurance broker”, as applicable.

The authorized sector classes of this sector are “personal-lines damage insurance” and “commercial-lines damage insurance”.

M.O. 2010-04, s. 6.

7. A representative authorized to act in the “personal-lines damage insurance” sector class may only offer products and advisory services pertaining to:

(1)  property and civil liability of a domestic nature of a natural person or an independent worker at his residence;

(2)  residential buildings containing not more than 6 dwellings.

He uses the title of “personal-lines damage insurance agent” or “personal-lines damage insurance broker”, as applicable.

M.O. 2010-04, s. 7.

8. A representative authorized to act in the “commercial-lines damage insurance” sector class may only offer products and advisory services pertaining to damage insurance for commercial businesses, including in respect of independent workers.

He uses the title of “commercial-lines damage insurance agent” or “commercial-lines damage insurance broker”, as applicable.

M.O. 2010-04, s. 8.

DIVISION IV CLAIMS ADJUSTMENT

9. A representative authorized to act in the claims adjustment sector uses the title of “claims adjuster”.

The authorized sector classes of the claims adjustment sector are “claims adjustment in personal-lines damage insurance” and “claims adjustment in commercial-lines damage insurance”.

M.O. 2010-04, s. 9.

10. A representative authorized to act in the “claims adjustment in personal-lines damage insurance” sector class is only authorized to act with respect to claims pertaining to:

(1)  the property and civil liability of a domestic nature of a natural person or an independent worker at his residence;

(2)  residential buildings containing not more than 6 dwellings.

He uses the title of “claims adjuster in personal-lines damage insurance”.

M.O. 2010-04, s. 10.

11. A representative authorized to act in the “claims adjustment in commercial-lines damage insurance” sector class is only authorized to act with respect to claims of commercial businesses, including in respect of independent workers.

He uses the title of “claims adjuster in commercial-lines damage insurance”.

M.O. 2010-04, s. 11.

DIVISION V FINANCIAL PLANNING

12. A representative authorized to act in the financial planning sector under a certificate issued by the Authority, in accordance with section 57 of An Act respecting the distribution of financial products and services (chapter D-9.2), uses the title “financial planner” or the abbreviation “F. Pl.”.

With the exception of paragraphs 4 to 6 of section 13 and sections 13.1 and 13.2, Divisions I to VI of Chapter II and the first, second and fourth paragraphs of section 55 hereof do not apply to financial planners.

M.O. 2010-04, s. 12; M.O. 2013-02, s. 1.

CHAPTER II ISSUANCE OF CERTIFICATES

DIVISION I CONDITIONS OF ELIGIBILITY

13. The Authority issues a certificate to a candidate who satisfies the following conditions:

(1)  he holds the minimum qualifications under Division II of this Chapter, where applicable;

(2)  he has passed the examinations prescribed by the Authority in accordance with Division III of this Chapter, where applicable;

(3)  he has successfully completed the probationary period under Division IV of this Chapter, where applicable;

(4)  he has submitted an application for a certificate in accordance with section 55;

(5)  he has complied with the requirements and conditions of issuance of a certificate prescribed in Divisions VII and VIII of this Chapter;

(6)  in the case of a foreign national, he holds a work permit issued by a competent authority allowing him to hold employment in Québec for which a certificate from the Authority is required.

M.O. 2010-04, s. 13; M.O. 2013-02, s. 2.

In force: 2014-04-01

13.1. In addition to the conditions mentioned in paragraphs 4 to 6 of section 13 and section 57 of the Act, a candidate in the financial planning sector must have passed the examination of the Institut québécois de planification financière leading to the diploma referred to in section 57 of the Act in the 6 years preceding his application for a certificate.

M.O. 2013-02, s. 2.

In force: 2014-04-01

13.2. Where an application for a certificate is received by the Authority more than 6 years after the examination referred to in section 13.1 is passed, a candidate holding a diploma conferred by the Institut québécois de planification financière is exempt from having to pass the examination again, provided that he satisfies the following conditions:

(1)  he held a certificate issued by the Authority in the “financial planning” sector for at least 2 years in the 6 years preceding his application for a certificate, and he satisfied the requirements pertaining to compulsory professional development;

(2)  he took part in professional development activities corresponding to those provided for under the Regulation respecting the compulsory professional development of financial planners (chapter D-9.2, r. 14.1) and accumulated the equivalent of at least 40 professional development units, apportioned in the manner set out in section 3 thereof, in the 6 years preceding his application for a certificate;

(3)  he was a member of a professional order with which the Authority entered into an agreement pursuant to section 59 of the Act, and he was authorized, under such agreement, to use the title of “financial planner” for at least 2 years in the 6 years preceding his application for a certificate.

M.O. 2013-02, s. 2.

DIVISION II MINIMUM QUALIFICATIONS

§ 1 . — Insurance of persons and group insurance of persons

14. A candidate in the insurance of persons sector, or in the group insurance of persons sector or a sector class thereof, must have, as minimum qualifications, one of the following:

(1)  a diploma of collegial studies or an equivalent level of education in accordance with the system of reference established by the Authority and available on its website;

(2)  an attestation of collegial studies in insurance recognized in an agreement entered into for that purpose between the Authority and a college-level institution;

(3)  a university-level certificate in insurance recognized in an agreement entered into for that purpose between the Authority and a university.

A candidate in the group insurance of persons sector or in a sector class thereof must also have passed the courses recognized in an agreement entered into for that purpose between the Authority and a training body, or university-level courses, corresponding to the competencies set out in Schedule 1 for this sector or the selected sector class.

M.O. 2010-04, s. 14; M.O. 2013-02, s. 41.

§ 2 . — Accident and sickness insurance

15. A candidate in the accident and sickness insurance sector class must have, as minimum qualifications, a secondary school diploma or an equivalent level of education in accordance with the system of reference established by the Authority and available on its website.

M.O. 2010-04, s. 15.

§ 3 . — Damage insurance and claims adjustment

16. A candidate in the damage insurance or the claims adjustment sector or in a class of these sectors must have, as minimum qualifications, one of the following:

(1)  a diploma of collegial studies or an equivalent level of education in accordance with the system of reference established by the Authority and available on its website;

(2)  an attestation of collegial studies in insurance recognized in an agreement entered into for that purpose between the Authority and a college-level institution;

(3)  a university-level certificate in insurance recognized in an agreement entered into for that purpose between the Authority and a university;

(4)  a secondary school diploma or an equivalent level of education in accordance with the system of reference established by the Authority and available on its website, and have worked full-time for at least 3 years within the past 10 years.

M.O. 2010-04, s. 16; M.O. 2013-02, s. 3.

§ 4 . — Exemptions

17. A candidate in a particular sector or sector class may be exempt from the minimum qualifications prescribed under this Chapter in respect of this sector or sector class if, for a period of at least 1 year, he held a certificate that was issued or renewed after 1 October 2002 and he acted as a representative in such sector or sector class.

M.O. 2010-04, s. 17; M.O. 2013-02, s. 4.

18. A candidate in the insurance of persons sector, or in the group insurance of persons sector or any sector class thereof, may be exempt from the minimum qualifications prescribed under this Chapter if he is able to demonstrate that he has the competencies to compensate for the required level of education set out under section 14.

M.O. 2010-04, s. 18; M.O. 2013-02, s. 41.

DIVISION III EXAMINATIONS

§ 1 . — Evaluation of competencies and eligibility

M.O. 2010-04, Sd. 1; M.O. 2013-02, s. 41.

19. A candidate must, for each sector or sector class for which he is applying for a certificate, pass the examinations prescribed by the Authority to demonstrate that he has the required competencies to comply with the legislation applicable to pursuing activities as a representative and, depending on the sector, that he has the following competencies:

(1)  for the damage insurance sector, the insurance of persons sector or the group insurance of persons sector or any sector class thereof, recommend or propose, as applicable, a product adapted to the client’s needs;

(2)  for the insurance of persons sector or the group insurance of persons sector or any sector class thereof, evaluate the tax impacts of an insurance contract or an annuity contract, as applicable;

(3)  for the claims adjustment sector or any sector class thereof, settle a claim based on the coverage subscribed for by the client.

M.O. 2010-04, s. 19; M.O. 2013-02, s. 5.

20. A candidate who submits an application and satisfies the following conditions may take the examinations pertaining to a sector or sector class:

(1)  he holds the minimum qualifications hereunder, as applicable;

(2)  he is not in any of the situations set out in sections 219 and 220 of the Act;

(3)  he has paid the fees prescribed under the Regulation respecting fees and contributions payable (chapter D-9.2, r. 9).

As soon as a candidate referred to in the second paragraph of section 14 has completed a course recognized in an agreement entered into for that purpose between the Authority and a training body, he may register for the examination corresponding to that course.

M.O. 2010-04, s. 20; M.O. 2013-02, s. 6.

§ 2 . — Exemptions

21. A candidate in a sector or sector class authorized under a certificate issued by the Authority to act in another sector or sector class is exempt from the examinations he has already passed for the purpose of acting in such other sector or sector class.

M.O. 2010-04, s. 21.

22. A candidate is exempt from the examinations if his certificate application is received by the Authority within the year following his surrender or non-renewal of a certificate held by him in the same sector or sector class as that covered by the application.

M.O. 2010-04, s. 22; M.O. 2013-02, s. 7.

23. A candidate is exempt from the examinations, other than those that seek to demonstrate that he is able to comply with the legislation applicable to the pursuit of activities as a representative, if his application for a certificate is received by the Authority within 3 years following his surrender or non-renewal of a certificate and he acted as a representative for at least 1 year in the same sector or sector class as that covered by the application.

M.O. 2010-04, s. 23; M.O. 2013-02, s. 8.

§ 3 . — Passing examinations

24. A candidate must score at least 60% to pass each examination prescribed by the Authority.

M.O. 2010-04, s. 24; M.O. 2013-02, s. 9.

25. An examination is valid for a period of 2 years as of the date the candidate passed the examination.

M.O. 2010-04, s. 25.

26. A candidate who fails the initial examination is entitled to write 3 supplemental examinations.

However, a candidate who has failed an examination and who does not register for the supplemental examination within a period of 2 years as of the date he failed the examination, must register again for the initial examination.

A candidate who fails an examination 3 times must, before submitting another registration application for this examination, successfully complete the courses corresponding to the competency evaluated by such examination with a training body recognized by the Authority or, failing that, a privately tutored course recognized by it.

A candidate who fails an examination 4 times must wait for a period of 2 years as of the date of the most recent attempt before reapplying to write the examination.

M.O. 2010-04, s. 26; M.O. 2013-02, s. 41.

27. A candidate is considered to have failed an examination if he fails to comply with the instructions given during the examination session or does not report for this session.

However, a failure may be cancelled by the Authority where warranted by exceptional circumstances.

M.O. 2010-04, s. 27.

28. At a candidate’s request, the Authority may review his examination.

This request for a review must be received by the Authority no later than the 30th day following the date of communication of examination results for which the review is being requested. However, a candidate who is able to demonstrate that he was unable to act within the 30 days due to exceptional circumstances may submit his request to the Authority after this period.

M.O. 2010-04, s. 28; M.O. 2013-02, s. 10.

DIVISION IV PROBATIONARY PERIOD

§ 1 . — Eligibility for probationary period

29. A candidate who submits an application and satisfies the following conditions may undertake a probationary period pertaining to a sector or sector class if:

(1)  he has passed each of the examinations prescribed by the Authority and such examinations are valid at the time the probationary period is undertaken;

(2)  he is not in any of the situations set out in sections 219 and 220 of the Act;

(3)  in the case of a foreign national, he holds a work permit issued by a competent authority allowing him to hold employment in Québec for which a certificate from the Authority is required;

(4)  he has paid the fees prescribed under the Regulation respecting fees and contributions payable (chapter D-9.2,r. 9).

However, a candidate whose examinations are no longer valid at the beginning of the probationary period may undertake a probationary period where warranted by exceptional circumstances.

An application for probationary period eligibility must be submitted to the Authority by the firm, independent representative or independent partnership with which the candidate undertakes such probationary period.

M.O. 2010-04, s. 29; M.O. 2013-02, s. 11.

29.1. To be eligible for a new probationary period, a candidate who has not successfully completed his probationary period must submit to the Authority the means he intends to use to correct the shortfalls noted in the supervisor’s report or by the Authority.

After completing 2 probationary periods unsuccessfully, a candidate may only undertake a new probationary period under the responsibility of another supervisor.

M.O. 2013-02, s. 11.

30. A candidate undertaking a probationary period must present himself publicly as a trainee at all times.

M.O. 2010-04, s. 30.

§ 2 . — Probationary certificate

31. The Authority issues a probationary certificate to a candidate who meets the conditions set out in sections 29 and 29.1.

The certificate includes the information necessary to identify the candidate and the information related to the validity period of the probationary certificate.

M.O. 2010-04, s. 31; M.O. 2013-02, s. 12.

32. The trainee may, notwithstanding section 12 of the Act respecting the distribution of financial products and services (chapter D-9.2), perform the following acts, under the supervision of his supervisor and the firm or independent partnership on whose behalf he pursues activities, as applicable:

(1)  in the insurance of persons sector or the group insurance of persons sector or any sector class thereof, gather information, conduct needs analyses and propose to his supervisor the products or services that may be adapted to the client’s needs, before proposing and selling them to the client;

(2)  in the personal-lines damage insurance sector class or the damage insurance sector, where he offers products and services pertaining to personal-lines damage insurance, gather information, and propose and sell to the client the products, coverages or guarantees adapted to his needs;

(3)  in the commercial-lines damage insurance sector class or the damage insurance sector, where he offers products and services pertaining to commercial-lines damage insurance, gather information and propose to his supervisor the products, coverages or guarantees that may be adapted to the client’s needs, before proposing and selling them to the client;

(4)  in the claims adjustment sector or any sector class thereof, gather information, propose to his supervisor the components of a claims investigation, the assessment of damage or the negotiation of a settlement, present to the insured the components of the negotiation of a settlement once they are approved by his supervisor and assist his supervisor in negotiating a settlement.

M.O. 2010-04, s. 32; M.O. 2013-02, s. 13.

33. A trainee must, upon first meeting a client, give the client a document, such as a business card, which must indicate the following

(1)  his full name;

(2)  his business address, business telephone number and electronic mail address, if any;

(3)  the sectors or sector classes in which he is authorized to act;

(4)  the name of the firm, independent partnership or independent representative on whose behalf he acts;

(5)  his title as trainee.

If the trainee deals with the client other than in person, he must provide him with the information referred to in subparagraphs 1, 4 and 5 of the first paragraph and, in such case, send him, at his request, the document referred to in the first paragraph when initially sending other documents.

M.O. 2010-04, s. 33; M.O. 2013-02, s. 14.

§ 3 . — Duration of probationary period

34. The probationary period pertaining to a sector lasts 12 weeks. It takes place on the basis of at least 28 hours a week and lasts not more than 14 weeks.

M.O. 2010-04, s. 34.

35. The probationary period pertaining to a sector class lasts 6 weeks. It takes place on the basis of at least 28 hours a week and lasts not more than 7 weeks.

M.O. 2010-04, s. 35.

36. During the probationary period, the trainee must not be in any of the situations referred to in section 56.

M.O. 2010-04, s. 36; M.O. 2013-02, s. 15.

37. The trainee must notify the Authority of any change to the information or a document that he has furnished to the Authority within 5 days of such change, where such change occurs during the probationary period.

If, as a result of the change, the trainee no longer satisfies the conditions of probationary period eligibility, the Authority withdraws the probationary certificate.

M.O. 2010-04, s. 37; M.O. 2013-02, s. 16.

38. The probationary period is interrupted if the trainee is in any of the following situations:

(1)  he is no longer under the supervision of an authorized person;

(2)  he is unable to continue with the probationary period due to disability, in particular as the result of a preventive withdrawal, because he is on parental leave or where warranted by exceptional circumstances.

In all other situations, the probationary period is considered to be discontinued.

M.O. 2010-04, s. 38; M.O. 2013-02, s. 17.

39. Where the probationary period is interrupted, the trainee must immediately cease to perform the acts referred to in section 32. This interruption may not last more than 4 weeks.

The trainee may apply to the Authority for authorization to extend the probationary period for its remaining duration by submitting an application to that effect, along with documentation of the reason for the interruption.

M.O. 2010-04, s. 39; M.O. 2013-02, s. 18.

40. The trainee may change supervisors during the probationary period without affecting its duration provided the Authority is informed of such change at least 10 days prior to the proposed change and the new supervisor acts on behalf of the same firm or the same independent partnership, as applicable.

M.O. 2010-04, s. 40; M.O. 2013-02, s. 19.

§ 4 . — Exemptions from probationary period

41. A candidate is exempt from the probationary period if his certificate application is received by the Authority within the year following his surrender or non-renewal of a certificate previously held in the same sector or sector class as that covered by the application.

M.O. 2010-04, s. 41; M.O. 2013-02, s. 20.

42. A candidate is exempt from the probationary period if his certificate application is received by the Authority within 3 years following his surrender or non-renewal of a certificate and he has acted as a representative for at least 1 year in the same sector or sector class as that covered by the application.

M.O. 2010-04, s. 42; M.O. 2013-02, s. 21.

43. A candidate is exempt from the probationary period if he has successfully completed a training period in accordance with Division V.

M.O. 2010-04, s. 43.

§ 5 . — Required qualifications and obligations of supervisor and replacement supervisor

44. A supervisor is a representative authorized to act at the time of the probationary period who, for at least 24 of the 36 months preceding the probationary period, was the holder of a certificate and acted as a representative in the same sector or sector class as that covered by the probationary period applied for.

M.O. 2010-04, s. 44; M.O. 2013-02, s. 22.

45. To act as a supervisor, the representative submits his application and satisfies the following conditions:

(1)  in the 5 years preceding the candidate’s application, has not been the subject of a disciplinary sanction imposed by a discipline committee established under the Act respecting the distribution of financial products and services (chapter D-9.2), or the Court of Québec sitting in appeal of a decision issued by such a committee;

(2)  in the 5 years preceding the candidate’s application, he has never been struck off the roll by a disciplinary council of a professional order;

(3)  he does not hold a certificate carrying restrictions or conditions under section 218, 219 or 220 of the Act respecting the distribution of financial products and services affecting his ability to act as a supervisor.

Where a supervisor no longer satisfies a condition mentioned in the preceding subparagraphs during the probationary period, he ceases immediately to act as a supervisor.

M.O. 2010-04, s. 45; M.O. 2013-02, s. 23.

45.1. A supervisor who has received 2 written notices from the Authority for failing to fulfill the obligations prescribed in sections 46 to 50 hereof may not act as a supervisor for 1 year as of the date of the last notice.

M.O. 2013-02, s. 24.

46. A supervisor may not have more than 5 trainees under his responsibility at any time.

M.O. 2010-04, s. 46.

47. Where a supervisor is absent, he is replaced by a replacement supervisor who must have submitted an application to this effect in accordance with section 45. The replacement supervisor must have the same qualifications and fulfill the same obligations as those imposed on the supervisor.

A supervisor registered with the Authority as an independent representative may not be replaced by a replacement supervisor unless the Authority so consents in writing.

M.O. 2010-04, s. 47; M.O. 2013-02, s. 25.

48. Excluding the offer of products and services pertaining to personal-lines damage insurance, the supervisor must approve the products and services offered by the trainee before they are recommended to the client, enter this approval in the client file and countersign, where applicable, any proposal or form, in particular, notices for purposes of replacement.

For the damage insurance sector, where products and services pertaining to personal-lines damage insurance are offered, or for the personal-lines damage insurance sector class, the supervisor must, within the next business day, review the trainee’s work and enter the review in the client file.

For the claims adjustment sector or any sector class thereof, the supervisor must verify the information gathered by the trainee, approve the components of a claims investigation, the assessment of damage or the negotiation of a settlement, enter the approval in the client file, accompany and assist the trainee when presenting these components to the insured and may be assisted by the trainee during the negotiation of the settlement.

M.O. 2010-04, s. 48; M.O. 2013-02, s. 26.

48.1. The supervisor must provide the trainee with the guidance he needs to adequately pursue activities as a representative in the sector or sector class for which he is applying.

To this effect, the supervisor must ensure that the trainee complies with the legislation, rules of ethics and rules of professional conduct and that he has the knowledge, competencies, behaviours and attitudes necessary to pursue activities as a representative.

The supervisor must also provide the trainee with a working environment conducive to learning and developing his competencies and help him to gradually pursue the activities reserved for representatives, as set out in section 32.

M.O. 2013-02, s. 27.

49. The supervisor must personally perform the tasks set out in section 48 as well as any other task related to his role as supervisor, including the following:

(1)  determine the tasks the trainee must carry out, specifying the time limits in which they must be completed;

(2)  at least once a week, evaluate and review the tasks carried out by the trainee;

(3)  make a recommendation as to whether or not the probationary period has been successfully completed.

The recommendation referred to in subparagraph 3 is received by the Authority within 10 days following the end of the probationary period, along with a report containing the information required by the Authority.

The report covers, among other things, whether the expectations set out in section 48.1 were met and what shortfalls were noted, as applicable. The recommendation and report must be approved by management of the supervisor’s firm or independent partnership, as applicable.

M.O. 2010-04, s. 49; M.O. 2013-02, s. 28.

50. The supervisor must inform the Authority, within 5 days, if the trainee has discontinued or interrupted his probationary period.

M.O. 2010-04, s. 50; M.O. 2013-02, s. 29.

DIVISION V TRAINING PERIOD

§ 1 . — Agreement with a training body

51. A candidate may carry out a training period established under an agreement entered into between a training body and the Authority. Such an agreement must set out, in particular, the requirements related to minimum competencies and the number and duration of any training periods.

M.O. 2010-04, s. 51; M.O. 2013-02, s. 41.

§ 2 . — Attestation of training

52. To obtain an attestation of training, a candidate must:

(1)  be enrolled in a training program recognized under the agreement referred to in section 51;

(2)  be accepted as a trainee in a firm or an independent partnership or with an independent representative registered with the Authority;

(3)  complete the forms prescribed for such purpose.

Upon analysis of the file, the Authority may issue an attestation of training for the candidate.

This attestation must contain the necessary information to identify the candidate and the information related to the training period the candidate is undertaking.

M.O. 2010-04, s. 52.

DIVISION VI EXEMPTIONS REGARDING CANDIDATES FROM NON-QUÉBEC JURISDICTIONS

§ 1 . — Canadian candidates

53. A candidate from another Canadian province or a Canadian territory seeking to act as a representative is exempt from the minimum qualifications set out in Division II of Chapter II and the examinations prescribed in paragraphs 1 and 3 of section 19 if he satisfies the following conditions:

(1)  he has furnished the Authority with a document issued by a competent authority of a Canadian province or territory while he lived outside Québec that is equivalent to a representative’s certificate whereby he was authorized to act in a corresponding sector or sector class in accordance with the system of reference established by the Authority and available on its website;

(2)  he has passed the examinations prescribed by the Authority to demonstrate that he has the required competencies to comply with the legislation applicable to pursuing activities as a representative and that he has the competency prescribed in paragraph 2 of section 19;

(3)  he has successfully completed the probationary period in accordance with sections 30 to 40 and 44 to 50;

(4)  he has submitted an application for a certificate to the Authority.

The authorization referred to in subparagraph 1 must have been in effect in the year prior to the candidate’s application to act as a representative.

A candidate who surrenders or does not renew the authorization referred to in subparagraph 1 of the first paragraph must have satisfied the conditions set out in subparagraphs 2, 3 and 4 of such paragraph within 3 years following the surrender or non-renewal of such authorization.

M.O. 2010-04, s. 53; M.O. 2012-08, s. 1; M.O. 2013-02, s. 30.

§ 2 . — Candidates from another country

54. A candidate who is from another country that is party to an agreement entered into with the Authority and who seeks to act as a representative in Québec is exempt, under the terms and conditions of the agreement, from:

(1)  the minimum qualifications prescribed in Division II of this Chapter;

(2)  the examinations set out in Division III of this Chapter corresponding to the candidate’s competencies;

(3)  the probationary period.

M.O. 2010-04, s. 54; M.O. 2013-02, s. 41.

DIVISION VII OTHER CONDITIONS OF ISSUANCE

55. A candidate’s application for a representative’s certificate under paragraph 4 of section 13 must be received by the Authority prior to the expiry of the validity period of his examinations.

Where the validity period of the examinations expires during the probationary period, the certificate application must be received by the Authority within 30 days following the end of the probationary period.

The candidate must submit, in support of his application, any information as well as any document attesting to the information contained in the form. He must also, at the request of the Authority, attach documents confirming that he has the degree of honesty considered necessary to pursue activities as a representative and those concerning his integrity and solvency.

A candidate who demonstrates that he was unable to act within the period provided for in the first paragraph due to exceptional circumstances may forward his application to the Authority on the expiry of this period.

M.O. 2010-04, s. 55; M.O. 2013-02, s. 31.

55.1. For the purpose of section 55, the probationary certificate remains in effect for 30 days as of the end of the probationary period.

During the processing of the certificate application and if the certificate application is received by the Authority within 30 days following the end of the probationary period, the probationary certificate remains in effect for up to an additional 15 days.

Upon issuance of a representative’s certificate or where the probationary period was not successfully completed, the corresponding probationary certificate expires.

M.O. 2013-02, s. 32.

56. To obtain his certificate, a candidate must comply with the following conditions:

(1)  he must not be the subject of a disciplinary sanction imposed by a disciplinary or discipline committee established under the Act respecting the distribution of financial products and services (chapter D-9.2), the Act respecting market intermediaries (chapter I-15.1), the Real Estate Brokerage Act (chapter C-73.1), by a disciplinary council established under the Professional Code (chapter C-26) or by the Court of Québec sitting in appeal of a decision issued by such a committee or council.

(2)  he must not be in default of paying any outstanding fines and costs that may have been imposed on him by any of the committees referred to above and by the Court of Québec, as well as any accrued interest at the rate established in accordance with section 28 of the Tax Administration Act (chapter A-6.002), as applicable;

(3)  he must have repaid any amount in principal, interest and costs that he was ordered to pay by final judgment by reason of his liability for any of the reasons referred to in section 175 of the Act respecting market intermediaries or section 258 of the Act respecting the distribution of financial products and services, and has repaid any amounts that were disbursed by the Fonds d’indemnisation des services financiers and that may be recovered by that fund, as a successor, by subrogation pursuant to those Acts;

(4)  he must not be in default of paying any fine related to an offence committed under the Act respecting the distribution of financial products and services, the Act respecting market intermediaries, the Securities Act (chapter V-1.1) or the Real Estate Brokerage Act;

(5)  he must not be in default of paying the fees and annual fees payable under the Regulation respecting fees and contributions payable (chapter D-9.2, r. 9).

M.O. 2010-04, s. 56.

56.1. To be issued a certificate, a candidate referred to in paragraph 6 of section 13 who is in the situation set out in paragraph u of section 186 of the Immigration and Refugee Protection Regulations (SOR/02-227) must act on behalf of a firm or be employed by an independent partnership.

M.O. 2013-02, s. 33.

DIVISION VIII TERMS AND CONDITIONS OF CERTIFICATE ISSUANCE

§ 1 . — General provisions

57. A candidate who forwards a certificate application to the Authority in the year following his surrender or non-renewal of the certificate he held in the same sector or sector class as that covered by the application must, as applicable, have remedied the failure to comply with the rules relating to compulsory professional development prescribed by regulation of the Authority or under by-laws of the Chambre de la sécurité financière or the Chambre de l’assurance de dommages.

M.O. 2010-04, s. 57; M.O. 2013-02, s. 34.

58. (Revoked).

M.O. 2010-04, s. 58; M.O. 2013-02, s. 35.

59. (Revoked).

M.O. 2010-04, s. 59; M.O. 2013-02, s. 35.

§ 2 . — Certificate particulars

60. A certificate issued by the Authority must include information relating to the certificate holder, the sectors or sector classes in which he is authorized to pursue activities, the titles he is authorized to use under the Act and, as applicable, the conditions and restrictions imposed on him by the Authority.

M.O. 2010-04, s. 60; M.O. 2013-02, s. 36.

§ 3 . — Validity period of certificate

61. A certificate is renewable on an annual basis.

M.O. 2010-04, s. 61.

62. The holder of a representative’s certificate must notify the Authority of any change to the information or a document that he has furnished to the Authority within 5 days of such change.

M.O. 2010-04, s. 62.

CHAPTER III RENEWAL OF CERTIFICATE

63. The Authority renews the certificate of a representative who has submitted a renewal application and who satisfies the conditions prescribed under paragraphs 4 to 6 of section 13, section 13.1 and the provisions of Division VII of Chapter II.

M.O. 2010-04, s. 63; M.O. 2013-02, s. 37.

64. A certificate renewal application must be received by the Authority prior to expiry of the certificate, or within 30 days following its expiry, but in such case, he must demonstrate that he was unable to take action sooner.

Where a certificate renewal application is processed after the certificate expires and on receipt by the representative of a notice from the Authority to that effect, the certificate is deemed to be in effect until its renewal or until a decision of the Authority refusing the renewal.

M.O. 2010-04, s. 64; M.O. 2013-02, s. 38.

CHAPTER IV MISCELLANEOUS, TRANSITIONAL AND FINAL PROVISIONS

§ 1 . — Miscellaneous provisions

65. To be admissible, any application referred to hereunder must be duly submitted on the form provided by the Authority and received by it within the prescribed time period. The application must be accompanied, as applicable, by the required documents and information stipulated in the form and the related fees and contributions required by the Authority under the Regulation respecting fees and contributions payable (chapter D-9.2, r. 9).

M.O. 2010-04, s. 65; M.O. 2013-02, s. 39.

66. Where a damage insurance broker becomes a damage insurance agent, or vice versa, he must notify each client concerned in writing within 30 days of such change or ensure, as applicable, that the firm on whose behalf he was acting does so.

M.O. 2010-04, s. 66.

§ 2 . — Transitional and final provisions

67. A natural person holding a certificate in the sector class of “claims adjustment in the employ of an insurer” is, as of 1 March 2010, deemed to be the holder of a certificate in the claims adjustment sector.

A natural person holding a certificate in the sector class of “claims adjustment in the employ of a personal-lines damage insurer” is, as of 1 March 2010, deemed to be the holder of a certificate in the sector class of “claims adjustment in personal-lines damage insurance”.

A natural person holding a certificate in the sector class of “claims adjustment in the employ of a commercial-lines damage insurer” is, as of 1 March 2010, deemed to be the holder of a certificate in the sector class of “claims adjustment in commercial-lines damage insurance”.

M.O. 2010-04, s. 67.

68. A natural person holding a certificate in the sector class of “accident and health insurance” is, as of 1 March 2010, deemed to be the holder of a certificate in the sector class of “accident and sickness insurance”.

M.O. 2010-04, s. 68.

69. (Revoked).

M.O. 2010-04, s. 69; M.O. 2013-02, s. 40.

70. (Revoked).

M.O. 2010-04, s. 70; M.O. 2013-02, s. 40.

71. (Revoked).

M.O. 2010-04, s. 71; M.O. 2013-02, s. 40.

72. (Revoked).

M.O. 2010-04, s. 72; M.O. 2013-02, s. 40.

73. This Regulation replaces the Regulation respecting the issuance and renewal of representatives’ certificates (Decision 99.07.08, 99-07-06).

M.O. 2010-04, s. 73.

74. (Omitted).

M.O. 2010-04, s. 74.

SCHEDULE I

(s. 14)

(1) The competencies evaluated by courses recognized under an agreement referred to in the second paragraph of section 14 are as follows for the sector or sector class concerned:

(1) for the group insurance of persons sector:

(a) prepare a group insurance recommendation taking the client’s needs into account and based, in particular, on an analysis of the client’s financial situation and ability to pay the premium;

(b) prepare a group annuity recommendation taking the client’s needs into account and based, in particular, on an analysis of the client’s financial situation and ability to pay the premium;

(c) comply with the legislation applicable to the activity of a representative in the group insurance of persons sector;

(d) evaluate the tax impacts of a group insurance contract and a group annuity contract;

(2) for the group insurance plans sector class:

(a) prepare a group insurance recommendation taking the client’s needs into account and based, in particular, on an analysis of the client’s financial situation and ability to pay the premium; and

(b) comply with the legislation applicable to the activity of a representative in the group insurance of persons sector;

(c) evaluate the tax impacts of a group insurance contract;

(3) for the group annuity plans sector class:

(a) prepare a group annuity recommendation taking the client’s needs into account and based, in particular, on the client’s financial situation and his ability to pay the premium; and

(b) comply with the legislation applicable to the activity of a representative in the group insurance of persons sector;

(c) evaluate the tax impacts of a group annuity contract.

M.O. 2010-04, Sch. I; M.O. 2013-02, s. 41.

REFERENCES

M.O. 2010-04, 2010 G.O. 2, 600

S.Q. 2010, c. 31, s. 91

M.O. 2012-08, 2012 G.O. 2, 1285

M.O. 2013-02, 2013 G.O. 2, 770