B.C. Reg. 573/2004, deposited December 13, 2004, pursuant to the FINANCIAL INSTITUTIONS ACT [Section 289]. Order in Council 1235/2004, approved and ordered December 11, 2004.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that, effective December 31, 2004,

(a) the Marketing of Financial Products Regulation, B.C. Reg. 333/90, is repealed, and

(b) the attached Marketing of Financial Products Regulation is made.

— G. M. COLLINS, Minister of Finance; S. BOND, Presiding Member of the Executive Council.

MARKETING OF FINANCIAL PRODUCTS REGULATION

Interpretation

1 In this regulation:

"Act" means the Financial Institutions Act;

"financial institution" includes

(a) an extraprovincial corporation,

(b) a society that is deemed under section 191 of the Act to have a business authorization, and

(c) a mutual fire insurance company as defined in section 188 of the Act.

Permitted rebate of premium

2 For the purposes of section 79 (1) of the Act, a rebate of premium must be less than 25% of the premium.

Disclosure by financial institutions and agents

3 (1) A financial institution or the agent of a financial institution must, at the time of providing a service or product to a customer, disclose to the customer

(a) the name of the financial institution whose service or product is being provided,

(b) the relationship between the financial institution and the person or agent offering to provide the service or product, and

(c) whether commission or compensation is to be paid by the financial institution to the person or the agent offering to provide the service or product.

(2) If a financial institution acts as agent for or on behalf of another person to provide a service or product of that other person to a customer, the financial institution must, at the time of providing the service or product, disclose to the customer

(a) the name of the person for whom the financial institution is acting,

(b) the relationship between the person and the financial institution, and

(c) whether commission or compensation is to be paid by the person to the financial institution for providing the service or product.

Disclosure by insurance licensees

4 It is a condition of every licence issued to an insurance agent that

(a) before acting as an insurance agent, the licensee disclose to the public that the licensee is an insurance agent, and

(b) if

(i) a customer purchasing a service or product is referred to a licensee by another person who is not an insurance agent, and

(ii) the licensee pays commission or compensation to the other person for referring the customer to the licensee,

the licensee, before arranging the transaction, disclose to the customer that commission or compensation has been paid to the other person for the referral.

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