The Financial Services Regulatory Authority of Ontario (FSRA) has imposed a $20,000 administrative penalty against Sudeep Sharma, after Sharma placed business without client’s informed consent on at least three different occasions.
In the first instance, Sharma submitted an application for a guaranteed acceptance life insurance policy for an existing client who did not consent to, review or sign for the policy. The client’s financial information was used without authorization to make payments.
In two other instances, Sharma placed existing policies on premium holidays to pay for the majority of the premiums on new policies he applied for without the client’s consent, telling the clients that the new polices would only be a small amount more each month (they didn’t know their existing polices were taking premium holidays) or no charge, calling it a promotion. In all instances, RBC Insurance cancelled the new policies and returned the premiums of $2,772.75 and $2,021.16 and $597.50, respectively. All told, Sharma earned approximately $3,992 in commissions.
FSRA says as part of the settlement, Sharma undertook not to apply for a license for 18 months. He withdrew his request for hearing in May 2023.
