The FINANCIAL INSTITUTIONS ACT (RSBC 1996, c. (the "Act")
and The INSURANCE COUNCIL OF BRITISH COLUMBIA ("Council")
and LORETTA LAI (the "Licensee")
DECISION AND ORDER UNDER SECTIONS 231 & 238 OF THE ACT
WHEREAS the Licensee currently holds a life and accident and sickness insurance licence in British Columbia;
AND WHEREAS a Notice of Hearing of the British Columbia Securities Commission ("BCSC"), dated September 26, 2016, set out allegations that Canadian Manu Immigration & Financial Services Inc. ("Canadian Manu Immigration"), which held a life and accident and sickness insurance licence during the material time, was'involved in a fraudulent investment scheme and committed 64 contraventions of the Securities Act;
AND WHEREAS the Licensee was the nominee and sole director of Canadian Manu Immigration during part of the material time;
AND WHEREAS the Licensee's spouse is alleged to have been a principal participant in the above-referenced fraudulent investment scheme and to have committed 82 contraventions of the Securities Act;
AND WHEREAS Council found that, while not specifically named in the BCSC Notice of Hearing, the BCSC's allegations against Canadian Manu Immigration raised concerns about the suitability of the Licensee in light of her position as nominee and sole director of Canadian Manu Immigration at the time;
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Decision and Order under Sections 231 & 23 8 of the Act Loretta Lai LIC-138218C82399Rl October 26, 2016 Page 2 of2
AND WHEREAS Council determined it would be in the public's interest to have the Licensee's insurance activities directly supervised by a qualified life and accident and sickness insurance agent ("life agent") until such time as the BCSC's consideration of the aforementioned allegations is complete;
AND WHEREAS Council considers the length of time it would take to address this matter through an intended decision, pursuant to section 231 of the Act, would be detrimental to the due administration of the Act and the public's best interest;
NOW THEREFORE, pursuant to sections 231 and 238 of the Act, Council orders that a condition is attached to the Licensee's life and accident and sickness insurance licence, effective the date of this order and until such time as the BCSC's consideration of the aforementioned allegations is complete and the matter has subsequently been considered by Council, that the Licensee must only conduct insurance activities under the direct supervision of a qualified life agent, otherwise the Licensee's life and accident and sickness insurance licence is automatically suspended.
TAKE NOTICE that, pursuant to section 238 of the Act, the Licensee has the right to require a hearing on this order before Council by delivering written notice within 14 days of receipt of this order to Council at Suite 300, 1040 West Georgia Street, Vancouver, British Columbia, V6E 4Hl; alternatively, the Licensee may appeal this order to the Financial Services Tribunal.
Dated in Vancouver, British Columbia, on the 26th day of October, 2016.