EMDA Insurance Program - Exclusive to EMDA Members!
The EMDA has appointed JonesBrown Inc. to work with the EMDA to develop an EMDA Insurance Program. The first component of the program will be the Financial Institution Bond ("FIB") Insurance coverage available exclusively to Members to help them quickly and cost effectively satisfy the insurance requirements of National Instrument 31-103. The deadline to have your insurance updated to meet the new FIB requirements of NI 31-103 is March 28, 2010.
EMDA Members - click here to apply for Financial Institution Bond coverage
After a formal survey of coverage and costing from various insurers, Chubb Insurance Company of Canada was selected as the insurer for the EMDA’s Insurance Program. The EMDA is considering expansion of the EMDA Insurance Program to offer preferred EMDA member rates on D&O, E&O, commercial, health, home, employee and auto insurance.
About JonesBrown
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.
Chubb is consistently ranked as the top insurer of fidelity bonds in Canada and North America, based on premium, according to the Surety & Fidelity Association of America (SFAA). Furthermore, Chubb is an industry leader in providing innovative insurance products for business and personal needs. Chubb maintains some of the highest financial strength ratings available to insurance companies. Their ratings are a reflection of their overall quality, strong financial condition, and strong capital position.
About NI 31-103 and your Financial Institution Bond Insurance requirements
On September 28, 2009, the Canadian Securities Administrators implemented National Instrument 31-103 which introduced new regulatory requirements for Exempt Market Dealers. As part of the new requirements, EMDs 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:
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"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."
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Exempt Market Dealers should be aware of the insurance provisions needed to satisfy the regulations and the cost implications associated with obtaining the required coverage.
Click here to complete an application for FIB insurance to satisfy the requirement of NI 31-103