Code of Ethics of Independent Financial Brokers of Canada

This Code of Ethics applies to all financial transactions, without regard to the product category, the type of intermediary, or the means by which the purchase of a product or service is transacted. If any principle or practice is inconsistent with a provision of an applicable law or regulation, the applicable law or regulation will take precedence.

1. Interests of Client
   It is paramount that a broker shall place the interest of his/her client ahead of all other interests.
   
   
2. Needs of Client
   Before giving advice or making recommendations, a broker shall make a diligent effort to learn the client's needs, objectives and circumstances, and to then offer products or services to fulfill them.
   A broker must not recommend the replacement of any insurance policy unless he/she believes that such a replacement is in the best interest of the client.
   
   
3. Legitimacy of Client and Transaction
   A broker shall collect enough information about the client and the proposed transaction to reasonably determine the identity of the client and that the transaction is lawful. The broker must not act on behalf of a client when there are reasonable grounds to believe that the transaction is of an unlawful nature.
   A broker must not knowingly submit information on an application for insurance to an insurer that is inaccurate or misleading.
   
   
4. Professionalism of Broker
   A broker should possess an appropriate level of knowledge relating to his/her particular business and meet high standards of professional ethics, including acting with honesty, integrity, fairness, due diligence and skill. Continuing education should be pursued as a means of keeping skill and knowledge levels current in accordance with regulatory requirements.
   A broker must ensure that his/her financial records are properly maintained and follow sound business practices.
   A broker must ensure that all financial obligations are met and strive to meet all regulatory requirements for professional liability insurance, errors and omissions insurance, trust accounts, deposits or other fiduciary measures.
   
   
5. Disclosure of Broker Information
   A broker must not misrepresent his/her education, qualifications or experience, and should inform the client of the business licenses and registrations held, as well as the business name(s) of firm(s) under which he or she is licensed to operate. He/she should ensure that all references to his/her business activities, services and products are clear, descriptive and not misleading.
   
   
6. Disclosure of Financial Products Information
   When recommending a transaction to a client, a broker must disclose all relevant facts, considerations, costs and risks necessary for an informed decision which are reasonably available to the broker. This disclosure should be in writing, and a written receipt obtained from the client.
   A broker may not be misleading as to the terms, costs, benefits, or risks of any proposed course of action.
   In addition to clearly describing the product or service for the client and the ways in which the transaction will fulfill the needs of the client, the broker must disclose important assumptions underlying any illustrations or examples that have been provided to the client, as well as the fact that actual results may differ significantly from those shown. The broker should avoid using examples or illustrations which he or she knows, or ought to know, are based on unusual results or a period that generated much better than normally anticipated performance.
   A broker must deliver all policies, amendments and other documents in a timely manner and must advise the client, in writing, if an issued policy is materially different from the policy applied for.
   
   
7. Confidentiality
   Client and policy information may not be disclosed to any individual or company without express written permission of the client.
   
   
8. Conflicts of Interest
   A broker must disclose to a prospective buyer of life insurance all conflicts of interest associated with any recommendations and transactions and the client should then be given the opportunity to halt the transaction, to seek professional advice or complete the transaction.
   
   
9. Behaviour
   A broker must act in good faith at all times, and meet high standards of professional ethics, including acting with honesty, integrity, fairness, due diligence and skill.
   He/she may not engage in behaviour that is likely to be detrimental to the public professional image of insurance, mutual fund or other financial brokers.
   A broker must deal directly with all formal and informal complaints or disputes, or refer them to the appropriate person or process, in a timely and forthright manner. Complaints must be reported to the errors and omissions insurer as soon as is practicable.
   
   
10. Independence
    An IFB broker must maintain his/her independence within IFB membership requirements.

Statement of Principles of Independent Financial Brokers of Canada

The Independent Financial Brokers of Canada is an Association created to represent licensed professional financial brokers and to provide a forum for them to develop opinions, recommendations and programs.

What the Independent Financial Brokers of Canada stands for:

1. The Independent Financial Brokers supports a neutral law controlling differing systems of distribution, excluding none.
   
   
2. The Independent Financial Brokers seeks a regime in which members of all distribution systems be licensed and subject to licensing controls.
   
   
3. The Independent Financial Brokers affirms that its members are able to undertake any other occupation, when necessary, within the requirements of the licenses held.
   
   
4. Within the limits allowed by law, members of the Independent Financial Brokers are required to maintain an arm's length relationship with all insurers with whom they are contracted.
   
   
5. The Independent Financial Brokers supports improved levels of education for all agents, and particularly, expects its members to be thoroughly trained and knowledgeable in insurance.
   
   
6. The Independent Financial Brokers believes that all life brokers in Canada should be subject to a Code of Ethics.
   
   
7. The Independent Financial Brokers supports the promotion and preservation of the common and specific interest of Association members as a professional body with full support for the principle of freedom in their business operations.