May 8, 2023.
New regulations regarding total cost reporting for segregated funds, the banning of deferred sales charges (DSCs) and a potential chargeback ban could be cramping the sales style of some insurance agents. But ultimately, those changes are good for the industry, say insurance sales professionals.
Andrew Feindel, portfolio manager and wealth advisor with Richardson Wealth Ltd. in Toronto, said the changes mean the days of an insurance advisor making a house call to close a deal are likely coming to an end.
“You could probably make the argument that it eliminates a lot of advisors who were incentivized to drive to that person’s home for a $5,000 cheque or a $10,000 cheque,” Feindel said. “They probably won’t be offering that same servicing experience if they’re not compensated up front.”