New Brunswick government proposes consolidated financial services commission

The New Brunswick government announced Thursday its intention to consolidate regulation of financial services, including insurance, under one independent agency.

“As our government stated in the 2011 Speech from the Throne, we have been studying the feasibility of creating a single, independent regulatory agency that would oversee financial services in New Brunswick,” Justice Minister and Attorney General Marie-Claude Blais stated in the legislative assembly Thursday.

Under the government’s bill, tabled Thursday, the consolidated Financial and Consumer Services Commission would commence July 1 and could appoint a superintendent of insurance.

That individual “shall have general supervision of the business of insurance within the Province, see that the laws relating to the business of insurance are enforced and obeyed, and report to the Financial and Consumer Services Commission on all matters connected with the business of insurance,” according to the proposed legislation. 

The new agency would be responsible for the current mandate of the Securities Commission, as well as being responsible for consumer affairs, credit unions, caisses populaires, co-operatives and trust companies, insurance and pensions. The commission would also provide for an “independent hearing tribunal,” according to the government.

With the proposed legislation, the current Office of the Consumer Advocate for Insurance would eventually be abolished and the appointment of the Consumer Advocate for Insurance would eventually be revoked. That office was created in 2005 for a 10-year term. 

“Many other jurisdictions in Canada have successfully adopted this approach and we believe that consolidating all of these branches under one umbrella organization is a smart move for New Brunswick as well,” Blais said.

“The creation of the Financial and Consumer Services Commission addresses past concerns that had been raised by the Auditor General and allows us to bring a consistent application of regulatory authority and reduced duplication,” she added.