DeCISion The Advisory Boara has recommended that Mr Romeh be granted a licence subject to stnctterms and conditions .
I have considered the recomm endations for licence conditions of the Advisory Board. The recommendations address four matters: • Hearing costs • Proficiency • Medical fitne ss • Supervision
The Advisory Board recommended that costs be levied against Mr. Romeh. The Commission does not have author ity to levy costs of an Advisory Board hearing . The Advisory Board recommended that Mr. Romeh provide a medi cal certif icate confirming that he is able to work as an agent, as a resoluti on to Mr. Romeh 's assertions that some of his actions were as a result of hea lth problems. However. as the Advisory Board noted , no evidence of health issues was provided by Mr. Romeh at the hearing , and accordingly , I do not see a sufficient basis at require a report on medical fitness as a condition of his licence. Accordingly, I do not propose to order conditions related to these two matters.
The Life Licence Qualification Program is a proficiency standard for new insurance agents. The recommendation dealing with completion of the Life Licence Qualification program implies that Mr. Romeh lacks the skills and knowledge necessary for a new insuran ce agent. However, there were no assertions by Mr. Romeh during the hearing that he did not know making false statements to the Commission was wrong. However. I bel ieve that training in ethics so that Mr. Romeh is more likely to chose the right behaviours is a more appropriate reflection of the matters raised in the Notice of Hearing dated December 17, 2007, and will order such a licence condition
The other recommendations are designed to establish a regime to supervise Mr Romeh. The recommended conditions for supervision appear designed to addres s: • the assertions by Mr Romeh that he misunderstood questions on his application for a licence and accordingly a risk exists that he
misread s or does not understanc documents such as msurance contracts or applications for Insurance Insurance appl ications con tain many questions which must be carefully and precisely answered • misrepresentations, representing a fisk that he will repeat this behaviour
Regulators cann ot simp ly assume that pas! behaviou r wil not recur Regulators need to consider 'he risk to ar apents clients or potentia clients . In many cases the 0 . way to adaress riS KS is to remove the agent from the industry permanently by revoking his or her licence In other situations, often with some difficulty, the risk can be managed through superv ision until such time as the agent is able to demonstrate that the past behaviours are not being repeated .
The Advisory Board has recommended conditions for supervision. These are similar in effect to supe rvision condit ions that have been ordered in other cases , and I will order those recommended conditions in a similar form as that used in those other cases. The conditions appl ied to Mr. Rameh will also reflect the Advisory Board 's recommendation that an insurance needs analysis be prepared for each insurance appli cation and that his supervisor accompan y him on meetings with clients and prospective clients.
The Advisory Board reported that Mr. Romeh failed to make comp lete disclosures to que stions on his applicat ion for a licence as an insurance agent, in spite of obtaining legal advice about the meaning of those questions. Effective and efficient regulation of agents requires that agents are truthfu l. False or misleading info rmation undermines the regulatory system and shows disrespectful for regulation . False statements to the Commission are a seriou s matter. Generally a pena lty for making a false statement to the Commission is necessary to ensure the integrity of the licensing system . A period of suspe nsion has been ordered in other cases . In this case , however, Mr. Romeh has not been licenced and not able to work as an insurance agent since his previous licence expired in August 2006. Accordingly I do not believe that It IS necessary to issue a licence to Mr. Romeh and then suspend it for a period of time as a penalty.
I hereby order that a licence as a life insurance agent be issued to Mr. Osama Romeh subject to the foHowing conditi ons and effective on the date that he has complied with the second and third conditions:
Mr Osama Romeh be supe rvised by a supervisor approved by the Supenntendent for a period of one year 2. Mr Romeh select a supervisor and sub mit the name of the
supervisor and his or her resume to the Superintendent. ~ Subject to written approval of the supervisor proposed by Mr. Romeh by the Superintendent such approval not to be unreasonably withheld. Mr. Romeh will arrange for his supervisor to provide a siqned undertaking to the Superintendent that he or she will' a review the insurance needs analysis and Insurance application for each case prepared by Mr Rome h and co sign all Insurance applications prepared by Mr Romeh b attend all meetings between Mr Romeh and clients or prospective clients for the first six month period of supervision c. report in writing to the Superintendent in the sixth and twelfth month of the period of supervision that the business on those applications in those six month periods complied with the law and good busin ess practice. 4. Me. Romeh shall have the right to subs titute supervisors subject to written approval by the Superintendent, such approval not to be unreasonably withheld 5. Mr. Romeh shall prepare an insurance need s analysis with every application 6. Mr. Romeh sha ll satisfacto rily complete a course about ethics during the one-year period of superv ision subject to the following conditions: a. Mr. Romeh select the course and submi t it for approval by the Superintendent b. Mr. Romeh pay for the approved course . C. Mr. Romeh provide to the Superintendent evidence of successful completion of the approved course by the conclusion of his one year period of supervision. -..... Dated at Toronto , this 'j day of August, 2008 .
Grant Swanson Executive Director, Licensing and Market Conduct Division by delegated authority from the Superintendent of Financial Services
"C1H: lllLL t The allegations referred tc the Notice Of OPPOl1unJly for Heanng are as follows :
1 Mr. Romeh is not qualified for a Life Insurance Agent licence and his application for a licence should be refused because
a He is not of 90 character and reputation as required by s 4(1)(a) of Regulation 347/04 ("Regulation") made under the Insurance Act
b. He does not have a satisfactory record in the employment or business as requ ired by s. 4(1 )(c) of the Regu lation
c. He is otherwise not a suitable pe rson to receive a licence as required by s. 4(1)(i) of the Regulation
d. He has made material misrepres entations or omissions in the applications for the licence contrary to s. 8(b) of Regulation 347104
€ . He ha s demonstrated incompetence or untrustwo rthiness to tran sact the insurance agency business contrary to s. 8(d) of the Regulat ion
f. Under s. 7(4) of the Regulati on, an application for renewa l of a licence may be refu sed on any grounds on which the Superintendent is authorized to suspend or revoke the licen ce .
2. Such furthe r and other allegations as counsel for FSCO may advise.