Compliance 2017 Fall general meeting, 2016 Earleen Moulton VP Compliance, BridgeForce Financial Group

Agenda Audits of advisor practices Elder issues Prepare for a (cyber) privacy breach AML changes coming

Audits for suitability

Monitoring /oversight Significant controls, manages risk Screening: Point in time, assessing suitability to be contracted and risk (to MGA and Carrier) Monitoring: On-going suitability, identify patterns to prevent and detect harm to consumers

New CLHIA Reference Document “Insurer Systems for Monitoring Statutory Compliance of Advisors” Describes procedures for monitoring compliance with statutory licensing requirements ON Reg. 347, s.12 -

Will you be audited? Monitoring done based on risk Would you be considered a ‘risky’ broker? Time to get your compliance ‘house’ in order

Elder issues

Elder issues IFIC launched 2 checklists for senior sales First in a series of tools that are being developed by IFIC's Vulnerable Investors Task Force Aimed at helping advisors prepare for the challenges of working with aging investors (potentially vulnerable) -cognitive decline -financial exploitation

Prepare for a privacy breach

Digital Privacy Act (DPA) 1. breach notification requirement - “real risk of significant harm” is the trigger 2. Reports to the Privacy Commissioner 3. Notification of individuals and other organizations 4. Data breach records to be created and maintained

New definition of breach: Unauthorized access to, or collection, use or disclosure of personal information including information that is lost, stolen, disclosed in error or as a result of an operational breakdown that results from a breach of security safeguards or failure to establish those safeguards.

Keep focused on AML

AML related issues to watch for FINTRAC exams NF2F ID requirements changing, Changes to regulations

Questions?