Greatway Financial Inc. has responded to a notice of proposal published by the Financial Services Regulatory Authority of Ontario (FRSA) saying the regulator has raised concerns that are not supported by facts. It adds that it will also be requesting a hearing before the Financial Services Tribunal.
Saying their agents are among the most knowledgeable in the industry, Greatway points to its mandatory eight-hour training related to policy delivery where agents are taught to explain life insurance products to clients, including the key risks and disclosures related to the policies being sold – a practice they say goes beyond standard industry practices. “In the last year alone, we’ve delivered over 1,250 hours of mandatory policy delivery explanation training to our insurance agents,” Greatway states in a release published October 24.
“We respect the FSRA’s role as the regulator for our industry, but we do not believe the FSRA’s report accurately reflects how we do business,” the statement reads. “On the contrary, we believe that the facts do not support a number of items the FSRA has raised, and we will be requesting a hearing before the Financial Services Tribunal with the primary purpose of allowing Greatway Financial time to resolve matters with the FSRA in a non-adversarial manner.”
The firm was part of a FSRA-led, multi-jurisdictional review of three MGAs including Greatway, along with Experior Financial Group Inc. and World Financial Group Insurance Agency of Canada Inc.
The review was first announced by the regulator at the end of September 2022. In that announcement, FSRA also noted that it would be developing a supervisory plan for two companies involved with the firms and would also be modifying its regulatory framework for MGAs in Canada – publishing draft guidance and proposed rules for comment, beginning in late 2022.
