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Advisors -- Find G19 Information Here!


Release Date: 05/31/2018
Staff Reference: g19session


Update on G19

The CLHIA has spent the last few months analyzing and considering the extensive and constructive feedback we received from the group advisor community on G19. As a result, CLHIA is adapting its approach to the Guideline as follows:

  • Allowing for advisor involvement in the disclosure;
  • Extending the timeline for implementation in group benefits, while maintaining the timeline for group retirement services;
  • Establishing a reasonable threshold for in-kind compensation; and
  • Launching robust consultations with advisors on G19.

For further details on these next steps, click here.

Should you have any questions, please send them to G19session@clhia.ca

Are you an advisor ...
CLHIA has developed Guideline G19, Compensation Disclosure in Group Benefits and Group Retirement Services. G19 will require insurers to disclose to their contract holders on an annual basis all compensation paid to intermediaries.

Use these resources to find out more!



Why did CLHIA develop G19?


Both international and domestic market conduct regulatory activities are increasingly focused on managing conflict of interest risk, providing appropriate disclosures to customers, and treating customers fairly. The life and health insurance industry takes these principles seriously and we believe that:

  • The expectations of plan sponsors (contract holders), regulators and other stakeholders around compensation disclosure are changing.
  • G19 will strengthen the industry's practices around compensation disclosure and contribute to a customer-focused distribution system.
  • Transparency in group intermediary compensation disclosure contributes to ensuring fair and appropriate outcomes for plan sponsors.

A note on timing

We understand the need to allow for systems updates, practice changes and other aspects that are important to the advisor community. Therefore, we are phasing in the new standards over the next three years as follows:

    For Group Retirement Services:
    • New sales: Anticipated compensation for new Group Retirement Services sales are to be disclosed to contract holders beginning January 1, 2019.
    • Renewal business: Ongoing compensation for Group Retirement Services will be tracked beginning January 1, 2019, with disclosure to contract holders to begin on January 1, 2020.

    For Group Benefits:
    • New sales: Anticipated compensation for new Group Benefits sales are to be disclosed to contract holders beginning January 1, 2020.
    • Renewal business: Ongoing compensation for Group Benefits renewal business will be tracked beginning January 1, 2020, with disclosure to contract holders to begin on January 1, 2021.