New Rule on conflict of interest in strata insurance business

Published February 23, 2023

The introduction of a new Insurance Council Rule, 7(11.2), will prohibit an insurance agency from engaging in insurance business for a strata corporation where that agency has common ownership with the corporation, business or other entity providing property management services to the strata corporation. This rule will come into effect July 1, 2023, and all licensees are expected to be in compliance by this date.

Council Rule 7(11.2) considers conflicts of interest in strata insurance business, and was approved alongside a number of other rules as part of the ongoing initiative to modernize the Insurance Council’s regulatory framework.

Licensee requirements under the new Rule are outlined in Notice #23-001 Conflict of Interest in Strata Insurance Business, and include:

• Information on the effective date of the rule

• Notification requirements aligned with the Code of Conduct and Financial Products Disclosure Regulation.

All licensees are expected to be aware of and comply with the requirements of the new rule.

Notice #23-001 Conflict of Interest in Strata Insurance Business can be found in the Notices section of the Insurance Council website. The recently updated Council Rules can be found on our website under Council Rules and Code of Conduct.

Questions about licensee requirements and compliance with Rule 7(11.2) may be directed to Kandace Hopkins, Director, Practice and Quality Assurance, at khopkins@insurancecouncilofbc.com.