OSFI Ruling – Websites are not Bank Branches

The insurance brokers association asked OSFI to rule on whether or not, for the purpose of the Insurance Business (Banks and Bank Holding Companies) Regulations, a bank website is a bank branch.  OSFI determined that there were a number of provisions in the Act that led them to conclude that the definition of branch is not broad enough to include a bank’s website. OSFI thus ruled that, for purposes of the Regulations, a bank website is not a bank branch. As a result, a bank may, on its website, promote in Canada any insurance policies or any insurance companies, agents or brokers, subject to the conditions that the Regulations impose on such promotion outside a branch. The brokers do not want banks to be able to sell insurance to bank customers through their websites.