SABS Fall Under New FSCO Rules

Statutory accident benefits (SABS) representatives will face new rules coming into effect from September, according to a bulletin issued by the Financial Services Commission of Ontario (FSCO). SABS representatives, largely paralegals, will now be banned from representing claimants if those representatives have been convicted of an applicable Criminal Code violation.

The bulletin includes a list of violations which would prohibit a representative from taking on a SABS case, such as fraud, bribery and perjury violations. FSCO is requiring representatives to file information with the regulator, and says it will conduct criminal record checks on those seeking to be part of FSCO’s website listing of eligible representatives. Insurers are expected to give claimants enough time to find a new representative if theirs is removed from the eligible list, and to notify the claimant if the insurer is aware that the representative has been de-listed.