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January 9, 2012updated 13 Apr 2017 8:46am

Canadian government to crack down on bank annuity-type products

No doubt much to the delight of Canadian life insurers, the countrys minister of finance Jim Flaherty has come down hard on banks that are attempting to circumvent strict rules forbidding their involvement in the sale of life insurance

By LII editorial

No doubt much to the delight of Canadian life insurers, the country’s minister of finance Jim Flaherty has come down hard on banks that are attempting to circumvent strict rules forbidding their involvement in the sale of life insurance.

Target of Flaherty’s wrath are what he termed annuity-like products being sold through bank branches but that are not subject to the same regulatory standards as those sold by insurance companies.

The government, he stressed, would soon introduce legislation that will prevent banks selling these products.

“Since taking office, this Government has taken steps to clarify the separation of banking and insurance activities,” said Flaherty in a statement.

“This [legislation] will ensure the business of insurance continues to be subject to the appropriate rules and regulations.”

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