EMDA FIB Bonding Insurance Coverage
The EMDA Financial Institution Bond ("FIB") Insurance coverage is available exclusively to EMDA Members to ensure they satisfy the EMD insurance requirements of National Instrument 31-103. Chubb Insurance Company of Canada is the underwriter for the EMDA’s FIB Bonding Insurance Coverage.
EMDA FIB Bonding Insurance may cut your costs of doing business! Take advantage of very competitive group pricing only available to EMD firms that are a member of the EMDA!
About our Broker:
Jones Brown is an insurance broker that began operations 1997 and has grown to over 100 employees with offices across the country. Early in their history, Jones Brown established a strong Financial Institutions Practice, which focuses on providing insurance and risk management services to clients in the financial services sector. They serve the needs of clients ranging from local boutique firms to major multi-national corporations.
NI 31-103 and EMD Financial Institution Bond Insurance Requirements
National Instrument 31-103 introduced new regulatory requirements for Exempt Market Dealers. As part of the new requirements, EMD firm are required to have Financial Institution Bond ("FIB”) insurance coverage. The FIB insurance requirements that apply to EMDs are set out in NI 31-103 as follows:
"Section 12.3 - Insurance - dealer
- A registered dealer must maintain bonding or insurance
- that contains the clauses set out in Appendix A [bonding and insurance clauses], and
- that provides for a double aggregate limit or a full reinstatement of coverage.
- A registered dealer must maintain bonding or insurance in respect of each clause set out in Appendix A and in the highest of the following amounts for each clause
- $50,000 per employee, agent and dealing representative or $200,000, whichever is less;
- one per cent of the total client assets that the dealer holds or has access to, as calculated using the dealer’s most recent financial records, or $25,000,000, whichever is less;
- one per cent of the dealer’s total assets, as calculated using the dealer’s most recent financial records, or $25,000,000, whichever is less;
- the amount determined to be appropriate by a resolution of the dealer’s board of directors, or individuals acting in a similar capacity for the firm.
- In Québec, this section does not apply to a scholarship plan dealer or a mutual fund dealer registered only in Québec."