FSRA urges stronger compliance as misconduct reports and penalties rise in the sector
“Protecting consumers is our top priority and this supervision plan is a critical step towards improving the way we do that.”
With these words, the Financial Services Regulatory Authority of Ontario (FSRA) has released its 2024-25 Life and Health Insurance Agent Supervision Report and 2025-26 Supervision Plan, signalling heightened expectations for oversight, compliance, and ethical conduct across the sector.
FSRA’s latest findings reveal persistent challenges in agent conduct, including intentional deception, document falsification, and the sale of unsuitable products.
The regulator responded with licence revocations, suspensions, and administrative monetary penalties, underscoring its commitment to fair outcomes for consumers.
Notably, 176 Life Agent Misconduct Reports (LAMRs) were filed in 2024-25—a 22 percent increase from the previous year—highlighting ongoing concerns around fraud, trustworthiness, and misrepresentation.
The supervision plan for the year ahead places a strong emphasis on enhancing reporting accuracy, monitoring frequent transfers of sponsored agents, and sharing supervision trends with industry participants.
FSRA will launch a Business Practice Compliance Questionnaire pilot to further assess agent conduct and inform regulatory strategies.
The regulator expects all industry participants to strengthen oversight, improve reporting, and ensure agents are properly trained and monitored.
Examinations conducted in 2024-25 identified key business practice issues: 45 percent of agents did not apply needs-based sales practices, 46 percent failed to complete product illustrations, and 32 percent did not provide complete advisor disclosures.
FSRA also found that 66 percent of agents examined may not be fully adhering to obligations under PIPEDA and FINTRAC, reinforcing the need for robust compliance processes.
The report calls on insurers and managing general agents to review their compliance systems, maintain thorough documentation, and ensure that recommendations are suitable for clients’ needs.
FSRA encourages proactive engagement with regulatory expectations, as well as vigilance in monitoring agent transfers—particularly the “rolling of bad apples” between firms.
