IN THE MATTER OF the Insurance Act, R.S.O. 1990, c.I.8, as amended (the “Act”), in particular sections 392.4, and 407.1;

AND IN THE MATTER OF Hong Wei Liao.

NOTICE OF PROPOSAL TO REFUSE TO RENEW LICENCE

TO: Hong Wei Liao

TAKE NOTICE THAT pursuant to sections 392.4 and 407.1 of the Act, and by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Director, Licensing, (the “Director”) is proposing to refuse to renew the life and accident and sickness insurance agent licence issued to Hong Wei Liao.

Details of these contraventions and reasons for this proposal are described below. This Notice of Proposal includes allegations that may be considered at a hearing.

SI VOUS DÉSIREZ RECEVOIR CET AVIS EN FRANÇAIS, veuillez nous envoyer votre demande par courriel immédiatement à: contactcentre@fsrao.ca

YOU ARE ENTITLED TO A HEARING BY THE FINANCIAL SERVICES TRIBUNAL (THE “TRIBUNAL”) PURSUANT TO SECTIONS 407.1(2) AND 407.1(3) OF THE ACT. A hearing by the Tribunal about this Notice of Proposal may be requested by completing the enclosed Request for Hearing Form (Form 1) and delivering it to the Tribunal within fifteen (15) days after this Notice of Proposal is received by you. The Request for Hearing Form (Form 1) must be mailed, delivered, faxed, or emailed to:

Address:
Financial Services Tribunal
25 Sheppard Avenue West, 7^th Floor
Toronto, Ontario
M2N 6S6

Attention: Registrar

Fax: 416-226-7750

Email: contact@fstontario.ca

For additional copies of the Request for Hearing Form (Form 1), visit the Tribunal's website at www.fstontario.ca

The hearing before the Tribunal will proceed in accordance with the Rules of Practice and Procedure for Proceedings before the Financial Services Tribunal ("Rules") made under the authority of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22, as amended. The Rules are available at the website of the Tribunal: www.fstontario.ca. Alternatively, a copy can be obtained by telephoning the Registrar of the Tribunal at 416-590-7294, or toll free at 1-800-668-0128 extension 7294.

At a hearing, your character, conduct and/or competence may be in issue. You may be furnished with further and or other particulars, including further or other grounds, to support this proposal.

REASONS FOR PROPOSAL

I. INTRODUCTION

1. These are reasons for the proposal by the Director to refuse to renew the life insurance and accident and sickness insurance agent licence issued to Hong Wei Liao (the “Applicant”).
2. The Director believes, on reasonable grounds, that the Applicant is not suitable to be licensed because the Applicant is not trustworthy or of good character and reputation.

II. BACKGROUND

Licensing History

3. The Applicant has been licensed in Ontario as a life insurance and accident and sickness insurance agent (licence #08104706) under the Act since September 2008.
4. On July 26, 2024, the Applicant applied to renew the licence.

Insurance Council of British Columbia Discipline

5. On September 11, 2023, the Insurance Council of British Columbia (the “ICBC”) issued a Notice of Hearing alleging the Applicant failed to act competently and/or in good faith, and/or in a trustworthy manner, and/or in accordance with the usual practice of the business of insurance by failing to perform competent client assessments; selling inappropriate life insurance products, failing to advise clients of suitable alternative products, and rebating 25% of policy premiums, contrary to regulations.
6. In addition, the ICBC alleged that the Applicant described her educational credentials in a misleading manner by representing that she has a Canadian master’s degree in business administration (the “Canadian MBA”) when that is not true.
7. A hearing commenced in November 2023 (the “November Hearing”) and adjourned with a continuation pending. At the November Hearing, the Applicant tendered a diploma and transcript purported to be from York University (the “York Documents”) supporting her Canadian MBA. The ICBC launched an investigation that confirmed the York documents are not authentic.
8. On May 29, 2024, the ICBC cancelled the Applicant’s licence without a hearing based on the investigation of the York Documents because “the length of time required to hold a hearing would be detrimental to the due administration of the Act”. The Applicant’s licence was ordered “cancelled” and she was prohibited from reapplying for a licence for three (3) years.
9. The Applicant requested a hearing on the cancellation of her licence and a decision was released on October 28, 2024. The Hearing Committee found the Applicant attempted to mislead the November Hearing Committee by testifying that she had an MBA from Canada and supported that testimony by tendering the York Documents, knowing the evidence was untrue and that the York Documents were not authentic. The Applicant was found to have breached the Code and Rules by failing to be trustworthy, failing to act in good faith, and failing to be in honest in response to the Council. The Notice of Hearing was proven on a balance of probabilities and a hearing to decide penalty is to be scheduled.

III. GROUNDS FOR REFUSING TO RENEW LICENCE

10. Section 392.4(1) of the Act states that the Chief Executive Officer shall issue an insurance agent’s licence if the agent has satisfied the prescribed requirements for a licence unless he believes, on reasonable grounds, that the applicant is not suitable to be licensed, having regard to such circumstances as may be prescribed and other matters the Chief Executive Officer considers appropriate.
11. Section 4 of Ontario Regulation 347/04, subsections (a) and (i) respectively, provides that an applicant for a licence shall be granted a licence if the Chief Executive Officer is satisfied that the applicant is of good character and reputation, and otherwise suitable to receive a licence.
12. Subsection 7(4) of Ontario Regulation 347/04 authorizes the Chief Executive Officer to refuse a renewal of a licence on any grounds on which a licence may be suspended or revoked.
13. Section 8 of the Ontario Regulation 347/04 states that the Chief Executive Officer may suspend or revoke a licence on any grounds on which an application for a licence may be refused or if, after due investigation and hearing, it appears to the Chief Executive Officer that the licensee:
    1. violated any provision of the licence in the licensee’s operations as an agent;
    2. made a material misstatement or omission in the application for the licence;
    3. been guilty of a fraudulent act or practice; or
    4. demonstrated incompetence or untrustworthiness to transact the insurance agency business for which the licence has been granted.

14. FSRA must assess suitability keeping in mind that the purpose of licensing is to ensure that consumers receive competent and ethical insurance brokering services from those licensed to participate in the industry. When FSRA issues a licence, it is considered a public endorsement that the licensee can serve as a trusted advisor to their clients who often rely on their insurance agents when making important financial decisions that can have a significant impact on their lives and well-being. When applicants fail to disclose information related to suitability, they prevent FSRA from performing its gatekeeping function to assess who is eligible for a licence.
15. The Director believes, on reasonable grounds, that the Applicant is not suitable to be licensed under the Act. The Applicant is not of good character or conduct and has demonstrated untrustworthiness to transact the insurance agency business. The Applicant’s conduct relating to honesty and integrity is a risk to consumer protection that cannot be cured by conditions on the licence.
16. Such further and other reasons as may come to my attention.

DATED at Toronto, Ontario this 18^th day of December 2024

Original signed by

Yovanka McBean
Director, Licensing

By delegated authority from the Chief Executive Officer

Si vous desirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immediatement a : contactcentre@fsrao.ca.