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Volume 63, No. 18

227/2020

The British Columbia Gazette,

Part II

September 22, 2020

B.C. Reg. 227/2020 , deposited September 10, 2020, under the MUNICIPAL AFFAIRS AND HOUSING STATUTES AMENDMENT ACT (NO. 2), 2020 [section 17] and the FINANCIAL INSTITUTIONS ACT [section 289]. Order in Council 499/2020, approved and ordered September 4, 2020.

On the recommendation of the undersigned, the Lieutenant Governor, by and with

the advice and consent of the Executive Council, orders that

(

a) sections 14 and 15 of the Municipal Affairs and Housing Statutes Amendment Act (No. 2), 2020 , S.B.C. 2020, c. 16, are brought into force, and

(

b) effective November 1, 2020,

(

i) the Marketing of Financial Products Regulation, B.C. Reg. 573/2004, is amended

as set out in the attached Appendix 1,

(ii) the Administrative Penalties Regulation, B.C. Reg. 22/2013, is amended as

set out in the attached Appendix 2,

(iii) the Contravention of Prescribed Provisions Regulation, B.C. Reg. 566/2004,

is amended as set out in the attached Appendix 3, and

(iv) the Prescribed Offences Regulation, B.C. Reg. 576/2004, is amended as set

out in the attached Appendix 4.

— C. JAMES, Minister of Finance and Deputy Premier ; S. SIMPSON, Presiding Member of the Executive Council .

Appendix 1

1 The title of the Marketing of Financial Products Regulation, B.C. Reg. 573/2004,

is repealed and the following substituted:

FINANCIAL PRODUCTS DISCLOSURE REGULATION .

Section 1 is amended by adding the following

definitions:

"insurance company" includes

(

a) an extraprovincial insurance corporation, and

(

b) a mutual fire insurance company as defined in

section 188 of the Act;

"strata corporation" has the same meaning as in the Strata Property Act ;

"strata insurance contract" means a contract of insurance with a strata corporation in respect of a matter referred

to in

section 149 or 150 of the Strata Property Act .

Section 3 (1) is amended by striking out " and " at the end of paragraph (b), by adding " and " at the end of paragraph (

c) and by adding the following paragraph:

(

d) in the case of a strata insurance contract in respect of which a commission

or compensation is to be paid,

(

i) if the amount of the commission or compensation is known, the amount of the

commission or compensation, and

(ii) in any other case,

(

A) the method by which the commission or compensation is to be determined, and

(

B) a reasonable estimate of the commission or compensation.

4 The following sections are added:

Disclosure to strata corporation of material change in strata insurance contract

3.1 (1) Subsection (2) applies to an insurance agent through whom a strata insurance

contract was placed if, not less than 45 days before the expiry of the strata insurance

contract, the insurance company provides the following information, as applicable,

to the insurance agent:

(

a) the insurance company's intention to not renew the strata insurance contract;

(

b) the insurance company's intention to propose to renew the strata insurance

(ii) if a proposed new term or condition has not been finalized, the reason the

term or condition has not been finalized and an estimate of when the term or condition

will be finalized and disclosed to the strata corporation.

(2) Subject to subsection (3), an insurance agent to whom this subsection applies

must, not less than 30 days before the expiry of the strata insurance contract, disclose

the information described subsection (1) (

a) or (b), as applicable, to the strata

corporation in accordance with

section 3.3.

(3) Subsection (2) does not apply to an insurance agent in respect of information

described in subsection (1) (

a) if the insurance agent, not less than 30 days before

the expiry of the strata insurance contract, places with another insurance company

a replacement strata insurance contract containing substantially similar terms and

conditions as the expiring strata insurance contract.

(4) Subsection (5) applies to an insurance company if

(a) 30 days before the expiry of a strata insurance contract, either of the following

apply:

(

i) the insurance company intends to not renew the strata insurance contract;

(ii) the insurance company intends to propose to renew the strata insurance contract

conditions, including any increase in an insurance premium or deductible, and

(

b) the insurance company did not, within the period described in subsection (1),

provide the information described in subsection (1) (

a) or (b), as applicable, to

the insurance agent through whom the strata insurance contract was placed.

(5) Without limiting

section 3, an insurance company to whom this subsection applies

must, not less than 30 days before the expiry of the strata insurance contract, disclose

the information described in subsection (1) (

a) or (b), as applicable, to the strata

corporation in accordance with

section 3.3.

Disclosure of commission if material change in strata insurance contract

3.2

(1) This

section applies to an insurance agent through whom a strata insurance contract

was placed if

(

a) the insurance company, within the period described in

section 3.1 (1), provides

the information described in

section 3.1 (1) (

b) to the insurance agent, and

(

b) a commission or compensation is to be paid by the insurance company to the

insurance agent.

(2) Without limiting

section 3 (1) (d), an insurance agent to whom this

section applies

must, not less than 30 days before the expiry of the strata insurance contract, disclose

the following information to the strata corporation in accordance with

section 3.3:

(

a) if the amount of the commission or compensation is known, the amount of the

commission or compensation;

(

b) in any other case,

(

i) the method by which the commission or compensation is to be determined, and

(ii) a reasonable estimate of the commission or compensation.

Method of disclosure to strata corporation under

section 3.1 or 3.2

3.3 Despite any provision of the Act, if information must be disclosed to a strata corporation

under

section 3.1 or 3.2 of this regulation, a document containing the information

must be given to the strata corporation in accordance with

section 63 or 64 of the Strata Property Act .

Appendix 2

1 The

Schedule to the Administrative Penalties Regulation, B.C. Reg. 22/2013, is

amended

(

a) in items 120, 121 and 122 in Column 2 by striking out " Marketing of Financial Products Regulation " and substituting " Financial Products Disclosure Regulation ", and

(

b) by adding the following item as indicated:

Column 1

Item

Column 2

Prescribed provision of Act or regulation

Column 3

Monetary Penalty

Corporation

Individual

121.1

Section 3.1 (5) of the Financial Products Disclosure

Regulation, B.C. Reg. 573/2004

$50 000

Appendix 3

Section 2 of the Contravention of Prescribed Provisions Regulation, B.C. Reg. 566/2004,

is amended by striking out " and 4 of the Marketing of Financial Products Regulation " and substituting " , 3.1, 3.2 and 4 of the Financial Products Disclosure Regulation ".

Appendix 4

Section 2 of the Prescribed Offences Regulation, B.C. Reg. 576/2004, is repealed

and the following substituted:

Prescribed offences

2 For the purposes of sections 252 (2) (b.1) and 253 (2) of the Act, sections 2, 3, 3.1,

3.2 and 4 of the Financial Products Disclosure Regulation are prescribed provisions

of the regulations.

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