On April 9, 2024, at the Special Members’ Meeting, RIBO members voted in favour of a resolution to adopt three new by-laws, which replace the existing ones.
To help you navigate through the new by-laws and licensing structure changes, please carefully read the below questions and answers.
If you still have questions or need more information, please contact licensing@ribo.com, and our dedicated team will be happy to assist.
New By-Laws FAQs
- Where can I find information about the new by-laws?
- Why are the by-laws being updated?
- What are the changes in the by-laws?
- What is the change to the notice requirement?
- Why is the term ‘licensee’ used in the by-laws?
Licensing Structure Changes FAQs
- When will the new license framework come into effect?
- Why does the license no longer refer to A&S licenses?
- Can I still sell travel insurance, even if it isn’t specified on my license anymore?
New By-Laws FAQs
1. Where can I find information about the new by-laws?
Please see below for information about the new by-laws:
2. Why are the by-laws being updated?
As a not-for-profit corporation, RIBO is required to transition its structure from the Corporations Act to Ontario’s Not-for-Profit Corporations Act, 2010, by October 19, 2024.
RIBO Council undertook a review of its by-laws and identified several areas that required updates to existing by-laws to ensure RIBO is compliant with the legislation. Council also identified other opportunities to update the by-laws to modernize and improve them to recognize RIBO’s unique nature as a self-regulatory organization.
3. What are the changes in the by-laws?
Below are some of the changes as a result of the new by-laws:
By-Law No. 1
The quorum for special meetings and annual general meetings has increased from six to 25. Also, Council members can serve for a maximum of two three-year terms.
By-Law No. 2
The election process has been updated. The Governance and Nominating Committee will now have the primary responsibility to solicit nominations, review and assess candidates against the qualification requirements and needs of the Council, and recommend to Council a slate of candidates to stand for election as directors.
By-Law No. 3
- New licensing framework
- Licenses will have class names Level 1, 2 and 3.
- This does not change what products or services brokers can or cannot offer or sell.
- Modified notice requirement
- Licensees who are brokers are now required to notify RIBO within 10 days (instead of 30 days) of any change to their license status.
4. What is the change to the notice requirement?
Licensees are now required to notify RIBO within 10 days of any change to their license status.
This is shortened from 30 days, which was put in place at a time when printing, posting, mailing, and receiving documents was the norm instead of the fast delivery of email. In addition, this 10-day timeframe aligns with the practice of other regulators.
Some examples of changes that should be reported include:
- An individual licensee’s employment of sponsorship is withdrawn or changed;
- Any name change;
- Any contact information change;
- Any new or changes to the licensee’s secondary employment outside of being an insurance broker, if one is approved in accordance with Subsection 3.2(b);
- Any discipline by any financial sector regulator or any professional or occupational body;
- Charges or convictions of any criminal offence;
- A judgment rendered in relation to any insurance activities, fraud, or breach of trust;
- Bankruptcies;
- Suspension of an authorization or withdrawal of a Principal Broker, Deputy Broker or Supervising Broker; and
- Any additional information specified from time to time in Guidelines.
5. Why is the term ‘licensee’ used in the by-laws?
‘Membership’ is a term that is commonly used in the not-for-profit world. It is used in our legislation as well as the legislation of other self-regulatory organizations. The term ‘member’ can be confusing. e.g. member of Council, member of the Corporation or brokerage member or individual member. It’s used to describe members of the Corporation for the purposes of voting and governance in the Act.
RIBO opted to refer to licensees in the new by-laws to make the by-laws easier to understand. The term ‘licensee’ is defined in the by-laws specifically to refer to a member of the Corporation, so the terms can be used interchangeably. It’s our position that using the term ‘licensee’ instead of ‘member’ reflects a more modern way of speaking about regulated entities.
Licensing Structure Changes FAQs
1. When will the new license framework come into effect?
RIBO’s licensing framework is changing. Effective immediately, RIBO will begin issuing new licenses under the new framework, meaning that individuals will receive a Level 1, 2 or 3 license. This includes all individuals seeking a reinstatement who were previously licensed under the former licensing restriction framework.
All previously issued licenses, expiring September 30, 2024 will transition to the new license framework prior to the license renewal period.
2. Why does the license no longer refer to A&S licenses?
In RIBO’s early days in 1981, we were given the authority to register A&S-licensed individuals who were “independent” (i.e. that they did not work for an insurance company or agent). We do not have any individuals who are registered under this category of license.
Over time, the distribution model insurers used for these product lines have evolved, and individuals must be FSRA-licensed to sell A&S products.
The changes will have no impact for individuals who wish to become RIBO-licensed that have an L&H or A&S license.
Similarly, RIBO-registered brokerages may also be registered to sell those FSRA-licensed products concurrently.
3. Can I still sell travel insurance, even if it isn’t specified on my license anymore?
Yes, if you are licensed to sell travel insurance now, you will continue to be licensed to sell travel insurance once your license transitions to the new framework.
Since January 1, 1993, it’s been mandatory for an insurance broker selling Travel Health Insurance to be licensed by RIBO to do so.
At that time, RIBO Council required individuals to obtain a minimum of 60% in the Travel Health section of the Entry Level 1 exam to meet this requirement.
Going forward, there will be no minimum passing mark for this section. This will not change what products brokers are allowed to sell.
RIBO has worked to establish its own qualification standards to allow brokers to sell travel insurance in such circumstances and does not plan to remove these requirements from its competency standards.