Brokerages should be “separate and distinct” from other business: RIBO

In order to ensure confidentiality of client information, a brokerage office must be separate and distinct from other business, according to the Registered Insurance Brokers of Ontario (RIBO).
Also, the premises of the brokerage must be clearly identified to avoid any confusion as to the independence of the brokerage from other businesses on the premises, RIBO notes in its summer Bulletin.
If not already exempt, any brokerage that shares office space or intends to share office space must apply for exemption from the Qualification & Registration Committee.
The bulletin in Ontario comes about one year after the “separate and distinct” issue was raised in both Saskatchewan and New Brunswick in the context of credit unions and brokerages.
The Credit Union Insurance Business Regulation in Saskatchewan states that, “No credit union shall carry on business in Canada in premises that are adjacent to an office of an insurance company, agent or broker unless the credit union clearly indicates to its members and customers that the credit union and its premises are separate and distinct from the office of the insurance company, agent or broker.”
Brokers in Saskatchewan raised concerns that a mere “glass wall” between a credit union and a brokerage does not give rise to “separate and distinct” offices, as contemplated by the legislation.
The same issue has also come up in New Brunswick, where brokers want to make sure that the regulations are being enforced by the credit unions.