IN THE MATTER OF the Insurance Act, R.S.O. 1990, c. I.8, as amended (the “Act”), in particular sections 441.2 and 441.3;
AND IN THE MATTER OF Gold Standard Group Inc. (“Gold Standard”).
ORDER TO IMPOSE ADMINISTRATIVE PENALTIES
Gold Standard was licensed as a life insurance and accident and sickness agent (licence # 67658M) under the Act between August 12, 2020 and August 12, 2022, when their licence expired.
On January 25, 2023, by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Director, Litigation and Enforcement (the “Director”) issued a Notice of Proposal to impose administrative penalties in the total amount of $100,000 on Gold Standard for the following contraventions:
a) for making false and misleading statements in soliciting or registering insurance contrary to section 17(c) of Ontario Regulation 347/04;
b) for inducing an insured under an existing life insurance contract to surrender the contract for consideration contrary to the insured’s interests, and contrary to section 17(b)(ii) of Ontario Regulation 347/04; and
c) for directly or indirectly permitting compensation to be paid to a non-licensee contrary to section 403 of the Act.
The Notice of Proposal was served on Gold Standard effective February 1, 2023. Section 441.3(5) of the Act provides that any person on whom a Notice of Proposal is served has fifteen (15) days after the Notice of Proposal is received to request a hearing by the Financial Services Tribunal (the “Tribunal”).
On March 30, 2023, the Assistant Registrar of the Financial Services Tribunal (the “Tribunal”) confirmed that Gold Standard did not request a hearing by the Tribunal in accordance with section 441.3(5) of the Act respecting the Notice of Proposal. Therefore, pursuant to section 441.3(7) of the Act, the Director makes the following order.
ORDER
Administrative penalties in the total amount of $100,000 are hereby imposed on Gold Standard Group Inc., for the reasons set out in the Notice of Proposal.
TAKE NOTICE THAT Financial Services Regulatory Authority of Ontario will deliver an invoice to Gold Standard Group Inc. with information as to where and how to pay the administrative penalties. Gold Standard Group Inc. must pay the administrative penalties no later than thirty (30) days after the order is issued.
If Gold Standard Group Inc. fails to pay the administrative penalties in accordance with the terms of this Order, the Chief Executive Officer may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An administrative penalty that is not paid in accordance with the terms of an order imposing the penalty is a debt due to the Crown and is enforceable as such.
DATED at Toronto, Ontario, March 31, 2023
Elissa Sinha
Director, Litigation and Enforcement
By delegated authority from the Chief Executive Officer
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