New compensation disclosure guideline to be delayedBy The IJ Staff | February 06 2018 09:45AM
Stephen Frank | Photo: Réjean Meloche
The Canadian Life and Health Insurance Association (CLHIA) has postponed the implementation of its new Guideline G19, Compensation Disclosure in Group Benefits and Group Retirement Services, by six months for new contracts to Jan.1, 2019.
"Advisors are valuable partners in delivering group benefits and retirement services to Canadians and their views on the new proposed standards and how to implement them are key. Consultations began earlier this year and we are listening to their views. That is why we took the immediate step of pushing back the implementation date," stated CLHIA President and CEO, Stephen Frank, in a Feb. 5 announcement.
The CLHIA is currently on a cross-country tour to meet with advisors to explain the guideline and gather feedback on the best way of implementing it. Advisors who cannot make it to one of these locations will also have the opportunity to participate in a webinar, in the official language of their choice, scheduled for Feb. 22.
The CLHIA is creating an advisory committee of advisors and insurers to provide their guidance. "We need the help of advisors to ensure successful implementation and we are committed to partnering with them on the new standards," said Frank.
The CLHIA says the goal of the new guideline is to be more customer focused and transparent in compensation disclosure by establishing industry standards in this area. “All insurers will be required to disclose to group contract holders (i.e., employers and other organizations offering group benefits and retirement services) all direct, indirect and in-kind forms of compensation paid or provided by insurers to intermediaries.”