FSRA slams door on agent licence applicant

FSRA slams door on agent licence applicant | Insurance Business Canada

Insurance News

FSRA slams door on agent licence applicant

She was deemed a “significant risk to consumers”

Insurance News

By
Terry Gangcuangco

The Financial Services Regulatory Authority of Ontario (FSRA) has denied an insurance agent licence to Sivashanthi Vijayakumaran, citing the “significant risk” she would pose to consumers.

According to FSRA, Vijayakumaran was deemed unsuitable for a licence under subsections 4(1)(a) and (i) of Ontario Regulation 347/04. The regulator determined that her past behaviour raised significant doubts about her ability to conduct insurance business with integrity and in compliance with legal standards.

Specifically, Vijayakumaran had previously faced disciplinary action from the Real Estate Council of Ontario (RECO) – a fact she did not disclose in her insurance licence application.

While a real estate salesperson, Vijayakumaran was disciplined by RECO in 2020 after failing to secure a property, i.e. close and lock its door, following a viewing with a prospective buyer.

“To protect consumers, FSRA performs a gatekeeper function in assessing licensing applicants for suitability,” the regulator stated.

“When FSRA issues a licence, it endorses the good character and reputation of applicants, assuring the public that the licensee can serve as a trusted advisor to clients who often rely on their insurance agents when making important financial decisions that can have a significant impact on their lives and wellbeing.”

It added: “When applicants fail or refuse to take reasonable and appropriate steps to provide complete and truthful disclosure, they prevent FSRA from performing its gatekeeping function.

“The totality of the applicant’s conduct, including that which was resolved by the RECO decision, indicates that the applicant would pose a significant risk to consumers if licensed that cannot be cured by attaching conditions to the licence.”

Vijayakumaran did not challenge the decision or request a formal hearing.

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