RIBO AGM: U.S. Broker Allegations “Ripple Down” to Ontario

While the past year had seen the situation improve on many fronts for brokers, the events of the past two months in the U.S. are now taking their toll on Ontario’s brokers, noted Rod Finlayson, outgoing president of the Registered Insurance Brokers of Ontario (RIBO).

At the annual general meeting of the self-regulatory body for brokers, Finlayson said, “up until a few weeks ago, I was going to report that it has been a fairly uneventful year… As most of you can imagine, recent allegations in the U.S. have had a ripple down effect here.”

He refers to investigations of broker compensation issues in the U.S. and the filing of a civil suit against Marsh by New York Attorney General Eliot Spitzer, who accuses the broker of bid-rigging, as well as conflict of interest relative to the acceptance of contingent commissions.

Finlayson notes that RIBO is now working with the Financial Services Commission of Ontario (FSCO) to look into a range of practices between brokers and insurers – he says the focus of the investigation is beyond contingent commissions to include overall market practices.

Reflecting on the past year, Finlayson points to several RIBO achievements: starting to update the broker-database system; a review of RIBO’s continuing education requirements; and holding the line on fees.