CONSENSUAL AGREEMENT AND UNDERTAKING (“Agreement”)
Between
THE MARKET PRACTICES COMMITTEE (“Committee”) of
THE LIFE INSURANCE COUNCIL OF SASKATCHEWAN (“Council”)
And NextPhase Financial Inc. (the “Agency”)
The Agency, through its designated representative Nick Ylioja (the “DR”) acknowledges and agrees that it received the Notice regarding a proposed action pursuant to Section 10-11 of The Insurance Act (the “Act”), and the reasons therefor from Council, dated January 30, 2023.
The Agency acknowledges and agrees that it is guilty of misconduct by violating Council Bylaws as follows:
Bylaw 3-1 Licences and obligations
(4) A licence imposes on the licensee, and if a business, the designated representative, obligations including but not limited to, the following: (c) to immediately notify LICS of: (i) the failure to maintain the prescribed financial security requirements (errors and omissions insurance or the bond), pursuant to sections 5-10 and 5-23 of the regulations;
Consensual Agreement and Undertaking NextPhase Financial Inc.
Bylaw 4-1 Professional misconduct
(1) For the purposes of the Act, the regulations and these bylaws, professional misconduct is a question of fact but includes any matter, conduct or thing, whether or not disgraceful or dishonorable that: (c) is a breach of the Act, the regulations or these bylaws.
The Agency acknowledges and agrees that: a. Its right to make a written submission to or appear before the Committee at an oral hearing to make representations as to why this action should not be taken has been explained to the DR and that he fully understands the Agency’s rights and/or obligations.
b. The Agency waives its right to make a written submission to the Committee or to appear before the Committee at an oral hearing and chooses to resolve this matter by way of this Agreement and accordingly waives any right of appeal with respect to this action.
c.
This Agreement does not preclude Council from pursuing any other investigation and/or sanctions against the Agency for activities not identified in this Agreement that may be in violation of the Act, the regulations or Council Bylaws.
d. The Agency has been advised that it is in its best interest to obtain independent legal advice before entering into this Agreement. The Agency has either:
a. obtained such independent legal advice prior to executing this Agreement; or
b. has willingly chosen not to obtain such advice prior to executing this Agreement.
e. The DR hereby affirms that he has read and understands the terms of this Agreement and is signing, on behalf of the Agency, voluntarily and of his own free will.
Consensual Agreement and Undertaking NextPhase Financial Inc.
The Agency, having waived its rights, accepts and undertakes to fulfill the sanctions imposed by the Committee as follows:
a.
b.
c.
Pay a penalty in the amount of $300.00
Pay the costs of investigation in the amount of 4 hours x $110.00 = $440.00
Pay the fine and costs, in the total amount of $740.00 within thirty (30) days from the date of this Agreement.
The Committee’s Agreement: Upon fulfillment of the sanctions imposed, the Committee agrees this to be the full and final resolution of the violations of Council’s Bylaws by the Agency as outlined in this Consensual Agreement and Undertaking
________O_r_i_g_i_n_a_l_l_y_ s_i_g_n__e_d_ _b_y__: _N__ic_k__ Y__li_o_j_a________________ ___F__e_b_r_u_a__ry__ 1__4_, _2_0__2_3__________________ Nick Ylioja, Designated Representative Date for NextPhase Financial Inc.
________O__r_ig__in_a__ll_y_ _s_ig__n_e_d__ b__y_ _G_r_a_n__t_ L_a__u_b_e__ f_o_r_:_________ ____F__e_b_r_u_a__r_y_ 1__4_, _2_0__2_3_________________ THE MARKET PRACTICES COMMITTEE Date Life Insurance Council of Saskatchewan
Penalties affecting insurance intermediary’s licence
5-39(3) If a penalty imposed against a holder of an insurance intermediary’s licence pursuant to subsection (2) is not paid within 30 days after the holder is served with the written notice of the penalty and the decision of the Superintendent is not appealed, the licence is automatically suspended immediately following the last date for paying the penalty or appealing the decision, whichever is later, and remains suspended until the penalty is paid or the licence expires.