[Withdrawn by CSA Staff Notice 11-341, March 7, 2019] CSA Staff Notice: 33-305 - Sale of Insurance Products by Dually Employed Salespersons

CANADIAN SECURITIES ADMINISTRATORS STAFF NOTICE 33-305
SALE OF INSURANCE PRODUCTS BY DUALLY EMPLOYED SALESPERSONS

On August 27, 1999, the CSA Distribution Structures Position Paper (the "Paper") waspublished setting out the CSA position with respect to commercial structures employedby dealer registrants. One of the issues addressed in the Paper is that of duallyemployed salespersons. The Paper takes the position that dual employment should beallowed provided the salesperson's other employment does not interfere with his/herduties and responsibilities as a salesperson and the dealer is responsible for allfinancial activities of the salesperson that are not subject to another regulatory regime.The Paper includes insurance product sales and deposit taking activities as examplesof activities that are subject to another regulatory regime.

Staff has become aware that some dealers and salespersons have interpreted thePaper to mean that all activities of the salesperson must be the responsibility of thedealer, including the sale of insurance products.

Staff would like to emphasize that the Paper does not require salespersons tooffer the sale of insurance products through a dealer. However, if insuranceproducts are being offered through or by the dealer, the dealer would beresponsible for the sale of those products by the salesperson.

Questions may be addressed to:

Wayne Alfred
Legal Counsel
Alberta Securities Commission
(403)297-2092
[email protected]

Simon Millner
Senior Legal Counsel
British Columbia Securities Commission
(604)899-6642 or (800)373-6393 (in B.C.)
[email protected]

Jennifer Elliott
Legal Counsel
Ontario Securities Commission
(416)593-8109
[email protected]

Renée Piette
Conseillère à la réglementation
Commission des valeurs mobilières du Québec
(514)940-2199 ext.4558
[email protected]

Terry Ford
Deputy Director, Registration
Saskatchewan Securities Commission
(306)787-5876
[email protected]

January 7, 2000