Toronto (April 1, 2002) CAIFA is calling for the adoption
of a harmonized, one-step life licensing system in all provinces to reduce regulatory
complexity, raise the bar for new entrants, and enhance consumer protection.
In a letter sent to provincial ministers on March 22, 2002,
CAIFA president Dave Thibaudeau urged them “to do all that is necessary to give legal
effect to the new regulatory proposals for life insurance agents, commonly referred to as
the Life Licensing Qualification Program (LLQP).”
The adoption of the LLQP will ensure higher standards of proficiency comparable to the
qualifications to enter other regulated professions. Specifically, the LLQP contains:
a mandatory preliminary course of study, delivered by accredited suppliers;
substantially broader and deeper content; and
a more demanding licensing examination that requires the
applicant to demonstrate an ability to apply the knowledge that has been acquired.
“The LLQP is a working instrument that can train and
certify financial advisors, who have the necessary qualifications, to effectively provide
life insurance products and services to consumers,” says Thibaudeau. “This
program raises the bar and should be implemented without further delay.”
The final remaining step is to implement the LLQP into the
statutory licensing framework of each participating jurisdiction. (Quebec has already
previously developed a similar independent program.) CAIFA proposes a target date for
national implementation of the LLQP of August 1, 2002.
The provinces adopted a system for licensing life insurance
agents from 1957 to 1970 that, with some variations and innovations, is still in place
today. The life insurance industry now recognizes the need for a second-generation model
that will meet the requirements and expectations of today’s consumers.
The Canadian Association of Insurance and Financial
Advisors (CAIFA) is a voluntary, not-for-profit professional association whose members,
gathered in 50 chapters, are represented in most major cities and towns across the
country. CAIFA is a founding member of the Financial Planners Standards Council (FPSC),
the body that grants the CFP designation. CAIFA members provide financial advice, and
market and sell financial products to over nine million Canadians.