A-32.1, r. 1.1 - Regulation respecting the prohibition on charging certain fees from holders of individual variable insurance contracts relating to segregated funds

Section 2 Disposition versions

2023-06-01

2. An authorized insurer, firm, independent partnership or independent representative may not, in any way whatsoever, require fees or compensation from the holder of the contract when the latter requests to have all or a portion of the invested amounts withdrawn or transferred to another segregated fund or requests a change in the fee option under the contract for the investing of such amounts, except for the following fees where these are provided for in the contract:

(1)  management fees, fees related to operating expenses, trading fees or small policy fees;

(2)  insurance fees, where such fees are not included in the fees referred to in paragraph 1;

(3)  fees related to advisory services paid for by the holder of the contract to the firm, independent partnership or independent representative, paid out by the insurer from the amounts invested by the holder of the contract; and

(4)  withdrawal or transfer fees, where such fees are not reduced on a sliding scale based on the length of time between when the amounts are invested and when they are withdrawn or transferred to another segregated fund.

M.O. 2023-04, s. 2.

Not in force

In force: 2023-06-01

2. An authorized insurer, firm, independent partnership or independent representative may not, in any way whatsoever, require fees or compensation from the holder of the contract when the latter requests to have all or a portion of the invested amounts withdrawn or transferred to another segregated fund or requests a change in the fee option under the contract for the investing of such amounts, except for the following fees where these are provided for in the contract:

(1)  management fees, fees related to operating expenses, trading fees or small policy fees;

(2)  insurance fees, where such fees are not included in the fees referred to in paragraph 1;

(3)  fees related to advisory services paid for by the holder of the contract to the firm, independent partnership or independent representative, paid out by the insurer from the amounts invested by the holder of the contract; and

(4)  withdrawal or transfer fees, where such fees are not reduced on a sliding scale based on the length of time between when the amounts are invested and when they are withdrawn or transferred to another segregated fund.

M.O. 2023-04, s. 2.