Direct Supervision Rule 6(1)(c) and 6(2)(b)

This proposed rule change would remove wording that creates potential confusion about salesperson supervision requirements.

Amendments to Rule 6(1)(c) and 6(2)(b)

Current Status

Voting Council concluded its review of proposed Rule changes in November 2022. This Rule amendment has been approved by the Minister of Finance and will take effect March 31, 2023.

See more information about the recent rule amendments

Overview
This proposed rule change would remove wording that creates potential confusion about salesperson supervision requirements.

Revised Rule Wording

How to read the proposed wording changes to the Rules:

Bolded text represents the addition of proposed wording.
Text that has been ~~struck out~~ represents wording proposed for removal.

Proposed Wording Direct Supervision

What is the proposed change?

This change to Rule 6(1)(c) and 6(2)(b) would remove the reference to “direct” supervision when referring to the supervision requirements for general insurance salespersons (level 1 licensee).

What is the rationale?

In June this year, a previously approved change to Rule 6(1)(b) will come into effect, permanently removing the location restriction requiring general insurance salespersons to work on business premises.

Currently, Rule 6(1)(c) and 6(2)(b) use the term “direct supervision” when referencing how salespersons are to be supervised. The potential for “direct supervision” to be interpreted as a requirement for the supervisor and salesperson to be in the same location leaves room for confusion given the upcoming change to 6(1)(b) permitting salespersons to work offsite. Removing the term “direct” from the Rule is intended to address this issue, but does not constitute any reduction in supervision responsibility.

Provide feedback about proposed changes to the Council Rules

Consultation is now closed. Stakeholder consultation on this proposed rule amendment ran March 28 to June 1, 2022.

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