Insurance and Mortgage Brokers in Quebec: A Practical Checklist

No one may act as a representative, or present themselves as one, without a certificate issued by the Autorité des marchés financiers (AMF, Quebec's financial markets regulator): that is section 12 of the Act respecting the distribution of financial products and services (ADFPS). A mortgage broker is also a representative within the meaning of the Act (s. 1 and 11.1), and the AMF has overseen mortgage brokerage since May 1, 2020; the OACIQ no longer oversees that activity.

• For every file, indicate the responsible broker who holds an AMF certificate.
• Entrust the AI assistant only with what does not require a certificate: reception, collection, reminders.
• Ben never presents itself as a broker and performs no reserved act.

An insurance representative must inquire about the client's situation, advise the client and, before the contract, describe the product and specify the exclusions (s. 27 and 28). A mortgage broker has similar obligations and must describe the loan offered (s. 58.1 and 58.2). The needs analysis must be done and recorded in the file; poor record keeping is an ethical breach, according to the code of the ChAD (the Chambre de l'assurance de dommages, Quebec's damage insurance chamber).

• Record the needs analysis before moving on to the quote.
• Check the record in the file when the complete file is handed over.
• Advice always comes from the broker: Ben only prepares the information.

Before proposing a loan, the mortgage broker discloses the names of lenders with which their clients have concluded a loan (s. 58.3) and their business ties with the lender (s. 58.4). The AMF reminds brokers that when introducing themselves, they give their contact details and the name of the firm they act for.

• Keep disclosures in the broker's hands.
• Ben gives the firm's name; it discloses nothing in your place.

Since October 11, 2024, mortgage administrators, brokers and lenders must verify the identity of their clients for certain transactions, keep records and have a compliance program. Ben can ask for the documents; the verification stays with the broker, according to FINTRAC's methods (FINTRAC is the Financial Transactions and Reports Analysis Centre of Canada).

As for advertising, the firm and the representative must identify themselves with the title and name registered with the AMF, and may not criticize a competitor's products or methods.

• Put the firm's name in every message template.
• Use the registered title before sending a campaign.

Personal information may only be used for the purposes for which it was collected, unless consent is given, and it must be express if the information is sensitive; commercial prospecting is never a compatible purpose (s. 12). Quote information therefore cannot be used to propose other products without consent. The law also calls for designating a person responsible for the protection of personal information, publishing their title and contact details, and logging confidentiality incidents in a register.

• Keep the history of consents and access.
• Be able to produce the list of a client's information.
• Keep the incident register up to date.

A commercial electronic message requires consent (s. 6). A written contract in force, or expired less than two years ago, creates an existing business relationship and implied consent (s. 10(10)(d)). Beyond that, or for a prospect, express consent is needed, and every message must offer a way to unsubscribe (s. 6(2)).

• Check consent before every renewal reminder.
• Include the firm's identification and the unsubscribe option.

The AMF has published a guideline on the use of AI, in force on May 1, 2027. It targets authorized insurers and other designated financial institutions, and covers governance, risk management and the fair treatment of clients. Check with the AMF whether it applies to your firm.

The safest approach is to divide roles clearly: Ben prepares, gathers and reminds; the broker advises, discloses and verifies. Reread this checklist whenever your practices change.

General information, not legal advice. Check with your professional order or the official source.

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• https://lautorite.qc.ca/professionnels/representants-et-cabinets
• https://www.blakes.com/fr-ca/perspectives/transfert-de-l-encadrement-du-courtage-hypothecaire-a-l-autorite-des-marches-financiers/
• https://www.quebec.ca/nouvelles/actualites/details/lautorite-des-marches-financiers-encadre-dorenavant-le-courtage-hypothecaire
• https://chad.ca/documents/code-de-deontologie-des-representants-en-assurance-de-dommages
• https://chad.ca/wp-content/uploads/2020/04/outil-tenue-dossiers-representants-2014-12-fr.pdf
• https://www.cai.gouv.qc.ca
• https://crtc.gc.ca/fra/internet/anti.htm

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