Federal - Changes proposed to Bank Act Regulations

• Finance Minister Flaherty has written to the banks advising them to discontinue the practice of marketing insurance on bank websites. He advised that he intends to pass legislation that would make the practice illegal.
   

• Private Member’s Bill
  Liberal MP Alexandra Mendes has sponsored a private member’s Bill C-457 An Act respecting the Insurance Business (Banks and Bank Holding Companies) Regulations.   The bill would change the regulations to make it illegal for a bank to:

1. Promote an insurance company, agent or broker;

2. Promote an insurance policy of an insurance company, agent or broker, or promote any service related to such a policy,

3. Provide a telecommunications device that is primarily for the use of customers in Canada and that links a customer with an insurance company, agent or broker by any means, including the Internet, and

4. Carry on business in Canada in premises that are adjacent to an office of an insurance company, agent or broker.  

The bill can be found at http://www2.parl.gc.ca/HousePublications/Publication.aspx?DocId=4131419&Language=e&Mode=1&File=24