An Ontario insurance agent who made false statements on multiple licence applications has been allowed to renew his licence with conditions, after a tribunal found the misrepresentations did not make him unsuitable for licensing.
The Financial Services Tribunal ruled that I.A., despite providing incorrect information on four separate applications between 2021 and 2023, should receive his life insurance and general agent licences subject to supervision and a $10,000 penalty.
The case centred on I.A.’s failure to disclose his 2019 termination from TD Bank for alleged misconduct, including “misusing position of trust” and “failing to follow policies and procedures related to accessing customer information and protecting customer privacy.”
Pattern of false statements
I.A. answered “no” on all four applications when asked if he had ever had employment terminated for breach of confidentiality or breach of trust. He also failed to disclose that his mutual fund dealer registration with the Ontario Securities Commission was subject to conditions.
On his initial 2021 applications, I.A. listed his reason for leaving TD Bank as “better opportunity” rather than termination. He also falsely declared he was not subject to investigation by a regulatory authority, despite being under OSC investigation at the time.
The Financial Services Regulatory Authority (FSRA) proposed to refuse licence renewal, arguing the false statements demonstrated I.A. lacked the honesty and integrity required for insurance licensing.
Unlicensed activity adds complications
The case was complicated by I.A.’s continuation of insurance business for four months after his licences expired in October 2023. During this period, he arranged more than 50 insurance policies while unlicensed.
However, the tribunal found mitigating circumstances. I.A. had asked his manager at Co-operators whether he could continue working while renewal applications were pending. His manager consulted the company’s distribution services and was incorrectly told “as long as the renewal is pending with the regulator, then yes, he can still transact business.”
I.A. immediately stopped conducting insurance business in February 2024 when FSRA clarified that an active licence was required.
Tribunal weighs credibility factors
The tribunal applied criteria from employment law precedent to assess whether I.A.’s past conduct provided reasonable grounds to believe he would not act with integrity as a licensed agent.
Key factors supporting licence renewal included:
- The false statements were not attempts to hide “egregious misconduct like fraud or theft”
- I.A. had worked without customer complaints at Co-operators since 2021
- The OSC had previously licensed him as a mutual fund dealer despite knowing his full background
- His supervisor testified that he remained “an honest person” despite the circumstances
- Co-operators committed to retaining him regardless of the tribunal’s decision
Financial impact considered
The tribunal noted that I.A.’s inability to sell insurance products since February 2024 had reduced his income by 40 to 50 per cent, serving as a deterrent against future misconduct.
The decision referenced similar cases where employment consequences were considered relevant to assessing future behaviour and the need for additional penalties.
Regulatory standards and public protection
The tribunal emphasized that members of the public place “considerable trust in insurance agents” for accurate advice and proper completion of insurance forms.
However, it distinguished I.A.’s case from others involving more serious misconduct. In a contrasting case, an applicant was denied licensing after failing to disclose automotive industry violations and receiving prohibited assistance during a required exam.
The tribunal concluded that “the misstatements on the licence applications, although serious, do not provide the compelling and credible evidence necessary to establish a reasonable belief that Mr. Ahuja is not suitable to be licenced.”
Licence conditions imposed
Rather than refusing the licence entirely, the tribunal ordered FSRA to issue both life insurance and general agent licences subject to strict conditions:
- One year of close supervision by Co-operators
- Prohibition from supervising other insurance agents during the supervision period
- Quarterly reports to FSRA confirming supervised activities and any complaints
- $10,000 monetary penalty to be paid within 60 days
The licence will not be issued until the penalty is paid.
Balancing misconduct and rehabilitation
The tribunal noted that licence refusal represents “the most significant consequence available to the regulator” and emphasized considering lesser penalties when they would adequately protect the public.
The decision highlighted I.A.’s positive employment record since his TD Bank termination, including successful completion of OSC supervision conditions and consistently positive performance reviews.
The tribunal concluded that I.A. had “learned a valuable lesson from the process itself” and that supervision combined with financial penalty would protect public interest without requiring additional suspension time.
For more information, see Ishaan Ahuja v. Ontario (CEO of FSRA), 2025 ONFST 4 (CanLII).
