R-17.0.1, r. 1 - Regulation respecting applications for authorization and liability insurance coverage for administrators of voluntary retirement savings plans

Updated to 16 April 2014

This document has official status.

chapter R-17.0.1, r. 1

Regulation respecting applications for authorization and liability insurance coverage for administrators of voluntary retirement savings plans

Voluntary Retirement Savings Plans Act

(chapter R-17.0.1, s. 114, par. 1, subpars. b to d, and par. 2).

DIVISION I OTHER DOCUMENTS THAT MUST ACCOMPANY AN APPLICATION FOR AUTHORIZATION

1. An application for authorization to act as administrator must be accompanied, in addition to the documents referred to in the second paragraph of section 28 of the Voluntary Retirement Savings Plans Act (chapter R-17.0.1), by the following documents:

(1)  a list of the officers in charge of the voluntary retirement savings plan, together with a description of their expertise in the area of financial and retirement products;

(2)  a document specifying the licence and registration numbers for a pooled registered pension plan within the meaning of the Pooled Registered Pension Plans Act (S.C. 2012, c. 16), where applicable.

M.O. 2014-02, s. 1.

2. A legal person’s excess amount of assets over liabilities which must be specified in the attestation referred to in subparagraph 2 of the second paragraph of section 28 of the Voluntary Retirement Savings Plans Act (chapter R-17.0.1) must be at least $1,000,000.

If this amount is less than $1,000,000, the amount of the irrevocable letter of credit or suretyship, or the sum of both, must be at least equal to the difference between the legal person’s excess amount of assets over liabilities and $1,000,000.

M.O. 2014-02, s. 2.

DIVISION II LIABILITY INSURANCE

3. The liability insurance contract which must be held by a legal person who applies for authorization to act as administrator must satisfy the following requirements:

(1)  contain the clauses referred to in Appendix A of this Regulation;

(2)  in respect of each clause referred to in Appendix A of this Regulation, provide an indemnity in the highest of the following amounts:

(a)  $1,000,000;

(b)  the amount determined by a resolution of the board of directors of the legal person based on a risk analysis of the voluntary retirement savings plan which such person plans to administer;

(3)  contain clauses that provide as follows:

(a)  the insurer must notify the Autorité des marchés financiers of its intention to not renew or to cancel the contract 30 days before the non-renewal or cancellation date;

(b)  the insurer must notify the Autorité des marchés financiers upon receiving notice of non-renewal or cancellation of the insurance contract; and

(c)  the insurer must notify the Autorité des marchés financiers of the receipt of any claim, regardless of whether or not the insurer decides to honour the claim.

M.O. 2014-02, s. 3.

4. For purposes of section 31 of the Voluntary Retirement Savings Plans Act (chapter R-17.0.1), the liability insurance that the plan administrator is required to maintain at all times must satisfy the following requirements:

(1)  contain the clauses referred to in paragraphs 1 and 3 of section 3;

(2)  in respect of each clause referred to in Appendix A of this Regulation, provide an indemnity in the highest of the following amounts:

(a)  $1,000,000;

(b)  1% of the assets of the voluntary retirement savings plan administered by the administrator, calculated using the most recent audited financial statements for the activities of the plan;

(c)  the amount determined by a resolution of the board of directors of the administrator based on a risk analysis of the voluntary retirement savings plan administered by it.

M.O. 2014-02, s. 4.

DIVISION III FINAL PROVISION

5. (Omitted).

M.O. 2014-02, s. 5.

APPENDIX A

(s. 3)

INSURANCE CLAUSES

Clause       Name of Clause       Coverage

A            Fidelity             This clause insures against any loss through
                                  dishonest or fraudulent act of employees.

B            On Premises          This clause insures against any loss of money,
                                  securities or other property through theft, 
                                  burglary or other fraudulent means, mysterious 
                                  disappearance, damage or destruction while within
                                  any of the insured’s offices, the offices of any
                                  banking institution or clearing house or within
                                  any recognized place of safe-deposit.

C            In Transit           This clause insures against any loss of money, 
                                  securities or other property through theft, 
                                  burglary, misplacement, mysterious disappearance,
                                  damage or destruction, while in transit in the 
                                  custody of any employee or any person acting as 
                                  messenger, except while in the mail or with a 
                                  carrier for hire other than an armoured motor 
                                  vehicle company.

D            Forgery or           This clause insures against any loss through
             Alterations          forgery or alteration of any cheques, drafts, 
                                  promissory notes or other written orders or 
                                  directions to pay sums in money, excluding 
                                  securities.

E            Securities           This clause insures against any loss through 
                                  having purchased or acquired, sold or delivered,
                                  or extended any credit or acted upon securities
                                  or other written instruments which prove to have
                                  been forged, counterfeited, raised or altered, or
                                  lost or stolen, or through having guaranteed in
                                  writing or witnessed any signatures upon any
                                  transfers, assignments or other documents or
                                  written instruments.
    

M.O. 2014-02, Sch. A.

REFERENCES

M.O. 2014-02, 2014 G.O. 2, 821