Advocis and CALU File Formal Submission to FSRA’s Proposed MGA Rule
Call for FSRA to revise its proposed approach to protect access to trusted financial advice
Toronto, ON, Nov. 18, 2025 (GLOBE NEWSWIRE) -- Advocis and the Conference for Advanced Life Underwriting (CALU) have filed a formal submission expressing concerns about the Financial Services Regulatory Authority of Ontario’s (FSRA) proposed Life and Health Insurance Managing General Agents (MGA) Rule. The submission highlights areas where FSRA’s proposed rule could unintentionally increase costs for consumers and place undue burden on small advisory businesses.
“Our submission is about safeguarding sole practitioners, partnerships, and incorporated agents with small teams who help consumers make informed financial decisions,” said Kelly Gorman, President and CEO of Advocis. “Regulation should strengthen consumer protection without limiting access to trusted advice. Advocis and CALU are committed to working with FSRA to make that happen.”
The Advocis and CALU submission identifies the following key issues:
- Overbroad Scope: The proposed MGA rule could capture a broader group of industry practitioners than was anticipated in the original proposal.
- Duplicate cost burden: The proposed rule could impose new licensing fees and renewal costs on thousands of incorporated advisors and small agencies who are already fully licensed and supervised. These added costs have the potential to create a triple licensing regime with no clear consumer benefit.
- Unclear Obligations: The proposed tiered classifications could subject one entity to overlapping requirements under different tiers, increasing legal and compliance costs with no clear benefit to consumer protection.
- Harmonization Gap: FSRA’s proposal is not harmonized with existing MGA rules in Saskatchewan and New Brunswick, creating a patchwork of rules that puts advisors carrying on business in Ontario at a disadvantage.
- Short Consultation Process: The new version of the proposed rule is extensively revised and expanded from the original proposal and was introduced with a shortened 30-day comment window, limiting the time for stakeholder engagement.
Advocis and CALU are calling for FSRA to create:
- A targeted, proportionate definition of MGAs that reflects actual business realities
- A clear, plain-language rule with no unnecessary duplication
- Proper consultation timelines to allow for meaningful input from affected stakeholders
- Coordination with other provinces to avoid further regulatory deharmonization.
Advocis and CALU encourage their members and partners to review the submission and raise their voices. The final comment deadline is November 19, 2025, and all advisors impacted by the proposed rule are encouraged to submit their views through FSRA’s consultation portal: https://www.fsrao.ca/engagement-and-consultations/consultation-fsras-updated-proposed-rule-2025-001-life-and-health-managing-general-agents
To read Advocis’ and CALU’s full submission, visit: https://www.advocis.ca/wp-content/uploads/2025/11/FSRA-proposed-MGA-Rule-Advocis-comment-letter-Nov-17.pdf
Take Action Before November 19
Advocis and CALU have formally submitted its concerns to FSRA, but individual voices matter too. The broader the response, the stronger the impact.
We urge all members who may be affected by this rule to make your views heard.
Attachment
Jacquie Kilislian, Director, Marketing & Communications Advocis, The Financial Advisors Association of Canada 416-342-9836 jkilislian@advocis.ca
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