Back Custom print Link Text Only Rich Text Print

  • CL-2.2 CL-2.2 Arrangements to Hold Client Money

    • CL-2.2.1

      Except as otherwise indicated, in order to ensure adequate protection of client money, insurance brokers must follow one of two approaches or a mix of both for holding client money:

      (a) Transfer the risk from the insurance broker to the insurance firm(s); or
      (b) Segregate client money into client money accounts that cannot be used to reimburse other creditors if an insurance broker fails.
      Amended: July 2023
      April 2012

    • CL-2.2.2

      For purposes of subparagraph CL-2.2.1 (a), funds paid directly to insurance firms must not be received by the insurance broker.

      Amended: July 2023
      April 2012

    • CL-2.2.3

      For purposes of Subparagraph CL-2.2.1 (a), a written agreement must be in place between the insurance broker and the insurance firm stating that premiums/ contributions — and if the insurance firm wishes, premium refunds — are held by the insurance firm.

      Amended: July 2023
      April 2012

    • CL-2.2.4

      For purposes of Subparagraph CL-2.2.1 (b), any client money, an insurance broker that is a financial institution, receives and holds for an insurance firm must be held in a client money account, properly segregated from the insurance broker's own funds.

      Amended: July 2023
      April 2012

    • CL-2.2.5

      [This Paragraph was deleted in July 2023].

      Deleted: July 2023
      April 2012