The Financial Services Regulatory Authority of Ontario (FSRA) has concluded a case with more than one notice of proposal – the case dragged on to a degree and additional infractions were noted in the second – issuing an administrative penalty of $15,000 and refusing to renew the insurance agent license issued to veteran representative, Noella Caspersz.
The regulator had originally sought a penalty of $50,000 after Caspersz failed to appear at four meetings with the regulator, cancelling only one of these in advance.
“On June 26, 2023, Caspersz emailed the investigator that she was not attending the interview the following day and would let the investigator know when she was ready. The investigator has still not heard back from Caspersz about scheduling an interview and has not received any of the information required,” the first notice of proposal states.
Once that August 2023 notice of proposal was issued, however, Caspersz began cooperating with the regulator, admitting that she paid compensation to a non-licensee, identified only as DT in the documents, but later identified as Daniel Emmerson Tiffin in the concluding minutes of settlement and undertaking.
First licensed in 1983, Caspersz applied to renew her license in July 2023. It later expired in August 2023. Caspersz’s license had also been suspended for 30 days in 2009 by the Financial Services Commission of Ontario, FSRA’s predecessor. At the time she admitted that another agent had written at least 10 insurance applications and, without advising the clients, named Caspersz as the servicing agent – documents which Caspersz signed.
In a February 2023 interview, a contractor who worked for Tiffin explained that Tiffin, identified as DT, would advise the insurance clients while an agent like Caspersz would sign paperwork and serve as the agent of record. “According to JH, the clients were frequently switched between insurance policies and AORs,” the first notice of proposal states. “As a result of the information provided by JH, FSRA decided to investigate Caspersz and others for churning, fronting and product-client suitability.”
Payments disguised as training fees
Payments to Tiffin, meanwhile, were disguised as training fees. Caspersz was unable to provide evidence that she’d received training during the three-year period she paid Tiffin.
Notably, the investigation also reportedly uncovered an email sent from Tiffin to some of his clients, entitled “Protecting Noella.” This, they say, included directions on how to answer questions from FSRA if clients were contacted. The directions included not mentioning Tiffin’s name and advising the clients to provide material misstatements that all of their business was conducted through Caspersz.
In the facts set out in the minutes of settlement, which Caspersz has admitted to, they say Caspersz paid Tiffin’s company approximately $14,815, all told. “Caspersz was aware that Tiffin was not a licensed life insurance and accident and sickness insurance agent at the time she made the payments,” the minutes state. “Caspersz was aware that at least some of the 16 clients continued to meet with Tiffin about their insurance products.”
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