A pair of announcements from the British Columbia Financial Services Authority (BCFSA) show multiple firms entering into voluntary compliance agreements with the regulator, after a period of unlicensed activity spanning years.

In the first announcement, SOS Warranty Services Inc. and Phoenix A.M.D. International Inc. signed a voluntary compliance agreement stating the firms will cease conducting new business until such time as the firms are authorized by the BCFSA to engage in the business of insurance.

It was determined that the companies carried on insurance business from 2021 to 2024, inclusive, when SOS Warranty undertook to indemnify consumers against losses through the contracts it sold, without being authorized to do so under the province’s Financial Institutions Act (FIA).

“The superintendent is not aware of any harm to B.C. policyholders,” the agreement states. The affiliated companies also agreed to pay the BCFSA $35,000, plus investigation costs in the amount of $4,100.

In the second announcement, Autopair Warranty Inc. similarly entered into a voluntary compliance agreement with the BCFSA after it offered, arranged, accepted premiums and issued contracts of insurance in selling vehicle warranties without being licensed to do so. The activity occurred from 2021 to 2023, inclusive. According to the agreement, the firm undertakes to cease carrying on any new business until licensed by the Insurance Council of British Columbia.

In the second case the regulator levied a $5,000 penalty and did not impose costs.