The Insurance Council of BC is adopting the national Segregated Funds Guidance (Guidance), as published by the Canadian Council of Insurance Regulators (CCIR) and the Canadian Insurance Services Regulatory Organizations (CISRO) on November 19, 2025.
The Segregated Funds Guidance builds on the principles and requirements in the Insurance Council of BC Rules and Code of Conduct. Licensees are advised to implement the Guidance within their insurance practice effective immediately.
Background
Following a multi-year, Canada-wide consultation with jurisdictions including the Insurance Council of BC, CISRO and CCIR have published a final version of the Segregated Funds Guidance (Guidance).
The Segregated Funds Guidance establishes enhanced national expectations for insurers and intermediaries with respect to the design, distribution, issuance, sale, servicing and administration of individual variable insurance contracts (IVICs), also known as segregated funds. The Guidance provides consumer protection regimes for IVICs and mutual funds given their similarity as investment vehicles, taking into account the differences between these products.
Licensee responsibilities
Licensees are expected to incorporate the principles and requirements detailed in the Guidance across their insurance practice and in the selling and servicing of individual variable insurance contracts (IVICs), also known as segregated funds. The expectations apply to licensee activities conducted throughout the life cycle of an IVIC.
The Guidance covers the following:
- IVIC design and documents
- Training of intermediaries
- Compensation of intermediaries
- Advertising
- Understanding IVICs, investment strategies, including leveraging strategies and client needs
- Recommendations, advice and disclosure
- Annual statements (Total Cost Reporting)
- Corporate governance/accounting/record keeping
- Oversight.
Resources
CCIR/CISRO Segregated Funds Guidance
Canadian Insurance Services Regulatory Organization (CISRO)
Canadian Council of Insurance Regulators (CCIR)
BC licensees with practice questions about this Guidance or any licensee requirements and practice requirements, can contact the Insurance Council at practice@insurancecouncilofbc.com.