Toronto, ON (Nov. 7, 2006) – With federal financial services legislation up for renewal in spring 2007, an outstanding question is whether a prohibition should continue on banks selling most kinds of insurance in their branches. In “Insurers and Banks: Levelling the Regulatory Playing Field,” author Mark R. Daniels examines the debate and asks: is it time to let more competition in the market?
A few years ago, the case for the prohibition was reasonable, he says. Much of it was centred on the need to create a level playing field for the providers of insurance services. Today, argues Daniels, “Broader access to a range of insurance products, supplied by an existing network of reliable, well-capitalized financial services providers is surely in the interest of consumers.” An outstanding question: who would regulate sales of insurance by banks? Amending federal legislation to incorporate provincial regulation could offer part of the answer, says Daniels.
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