IN THE MATTER OF the Insurance Act, R.S.O. 1990, c.I.8, as amended (the “Act”), in particular sections 392.4, 407.1, 441.2 and 441.3;

AND IN THE MATTER OF Gordon Kimberley Hinkson.

AND IN THE MATTER OF Ocean West Financial Group.

NOTICE OF PROPOSAL TO IMPOSE ADMINISTRATIVE PENALTIES AND REFUSE TO RENEW LICENCES

TO: Gordon Kimberley Hinkson

AND TO: Ocean West Financial Group Inc.
5325 Montiverdi Place,
West Vancouver, BC V7W 2W8

TAKE NOTICE THAT pursuant to sections 441.3 of the Act, by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Director, Litigation and Enforcement (the “Director”) is proposing to impose two administrative penalties in the total amount of $60,000 on Gordon Kimberley Hinkson:

An administrative penalty of $50,000, for contravening subsection 2(1) of Ontario Regulation 347/04 by acting as an agent without being licenced under the Act; and
An administrative penalty of $10,000, for contravening section 447(2)(a) of the Act by directly or indirectly furnishing false, misleading or incomplete information to the authority.

AND TAKE NOTICE THAT pursuant to sections 441.3 of the Act, by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Director is proposing to impose one administrative penalty in the amount of $50,000 on Ocean West Financial Group for contravening subsection 2(1) of Ontario Regulation 347/04 by acting as an agent without being licenced under the Act.

AND TAKE NOTICE THAT pursuant to sections 392.4 and 407.1 of the Act, by delegated authority from the Chief Executive Officer, the Director is proposing to refuse to renew the insurance agent licences issued to Gordon Kimberley Hinkson and Ocean West Financial Group.

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), 407.1(3), 441.3(2) and 441.3(5) 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

TAKE NOTICE THAT if you do not deliver a written request for a hearing to the Tribunal within fifteen (15) days after this Notice of Proposal is received by you, orders will be issued as described in this Notice of Proposal. TAKE FURTHER NOTICE of the payment requirements in section 5 of Ontario Regulation 408/12, which states that the penalized person or entity shall pay the penalty no later than thirty (30) days after the person or entity is given notice of the order imposing the penalty, after the matter is finally determined if a hearing is requested or such longer time as may be specified in the order.

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

These are reasons for the proposal by the Director to:
1. refuse to renew the insurance agent licences issued to Gordon Kimberley Hinkson (“Hinkson”) and Ocean West Financial Group (“OWFG”);
2. impose two administrative penalties in the total amount of $60,000 on Hinkson; and
3. impose one administrative penalty in the total amount of $50,000 on OWFG.

II. BACKGROUND

A. FSRA Licencing History

Hinkson was first licenced as a Life Insurance and Accident and Sickness Agent (licence # 12128104) under the Act on October 18, 2012. Hinkson’s licence previously expired on January 30, 2023. He applied to renew his licence on January 19, 2023, and it was subsequently renewed on March 24, 2023. Hinkson’s licence expired on March 23, 2025. Hinkson applied to renew his licence on March 31, 2025. The renewal is pending.
OWFG had been licenced as a life insurance agency (licence # 36164M) under the Act from December 22, 2006, until their licence expired on March 8, 2023. OWFG applied to renew their licence on September 28, 2023. The renewal is pending.
Hinkson is the President and designated agent of OWFG. Hinkson sold insurance policies through OWFG and OWFG received commissions from the sales.
Hinkson and OWFG are licenced as insurance agents in several provinces, including British Columbia, Alberta, and Saskatchewan.

B. Hinkson’s Unlicensed Insurance Activity

In 2016, Hinkson submitted his application to renew his insurance agent licence after his licence had expired. FSRA requested Hinkson to provide a list of business activities conducted after the expiry of his licence. Hinkson provided a response which indicated that he submitted two insurance applications to an insurer after the expiry of his licence. FSRA issued a reminder letter to Hinkson informing him that any business conducted without a valid licence is a violation of the Act and grounds for prosecution (the “2016 Reminder Letter”).
Hinkson applied to renew his licence on January 19, 2023, prior to its expiry date of January 30, 2023. FSRA requested additional information from Hinkson on February 9, 2023 and asked Hinkson to confirm that he would not conduct business until the licence was issued. Hinkson confirmed that he would not conduct business until the licence was issued. Hinkson’s licence was renewed on March 24, 2023.
As a result, Hinkson was unlicensed as an insurance agent from January 30 to March 24, 2023. During this time, Hinkson on behalf of OWFG, solicited clients on behalf of Manulife and sold one life insurance policy with a face amount of $20,000,000.

C. OWFG’s Unlicensed Insurance Activity

FSRA sent email communications to Hinkson on January 7, February 6, February 21, and March 8, 2023, to remind him that OWFG’s corporate insurance licence was due to expire on March 8, 2023 (the “OWFG FSRA Reminders”). The March 8, 2023, email included a warning that conducting insurance business without a licence was prohibited.
After March 8, 2023, OWFG, through Hinkson, solicited clients on behalf of Manulife and sold five life insurance policies. Three of these policies came into force (the “Policies”).
OWFG received approximately three million dollars in commissions from the sale of the Policies from Manulife and Hub Financial Inc. (“HFI”).
On October 12, 2023, FSRA asked Hinkson to confirm whether OWFG conducted any business while unlicensed and to provide any necessary documentation in that respect.
On October 16, 2023, Hinkson replied to FSRA stating that he recently settled two policies and provided documentation indicating that OWFG received commissions of $1,406,332.17 from Manulife while OWFG was unlicensed.
Documentation received from Manulife indicated that between March 9 and October 16, 2023, OWFG sold five policies and received approximately $2,977,884 in commissions from Manulife and HFI while unlicensed.

D. False Information on Licence Renewal Application

In November 2022, the Insurance Council of Saskatchewan (“ICS”) proposed regulatory action against OWFG for a failure to maintain prescribed financial security requirements and professional misconduct. In April 2023, Hinkson entered into a Consensual Agreement and Undertaking with the ICS pursuant to which a $1,740 sanction was imposed on Hinkson.
On OWFG’s corporate licence renewal application submitted to FSRA on September 28, 2023 (the “2023 Corporate Licence Renewal”), Hinkson falsely declared that he and OWFG had not been subject to discipline and were not currently the subject of an investigation by a regulatory authority in Ontario or elsewhere.
Hinkson declared on the 2023 Corporate Licence Renewal that he had truthfully answered all the questions and certified that he understood that providing false or misleading information may be sufficient grounds to revoke or refuse to renew a licence.

III. CONTRAVENTIONS OR FAILURES TO COMPLY WITH THE ACT

A. Unlicensed Insurance Agent Activity

Under section 1 of the Act, an “agent” means a person who, for compensation, commission or any other thing of value, solicits insurance on behalf of an insurer or transmits, for a person other than himself, herself or itself, an application for, or a policy of insurance to or from such insurer, or offers or assumes to act in the negotiation of such insurance or in negotiating its continuance or renewal with such insurer.
Section 2(1) of Ontario Regulation 347/04 provides that no individual, partnership, or corporation shall act as an agent unless the individual, partnership or corporation is licenced under the regulation.
Hinkson, while not being licenced as a life insurance agent under the Act, acted as an agent of Manulife by soliciting clients on behalf on Manulife and writing an insurance policy.
OWFG, while not being licenced as a corporate life insurance agent under the Act, acted as an agent of Manulife by soliciting clients on behalf on Manulife, writing five insurance policies, and receiving commission payments from Manulife and HFI on the three Policies.
The Director is satisfied that Hinkson and OWFG contravened section 2(1) of Ontario Regulation 347/04 by acting as a life insurance agent while not being duly licenced.

B. Giving False, Misleading, and Incomplete Information to FSRA

Subsection 447(2)(a) of the Act states that every person is guilty of an offence who directly or indirectly furnishes false, misleading or incomplete information to the Authority whether the information is required under this Act or is volunteered.
Hinkson provided misleading and incomplete information to FSRA regarding the number of insurance policies that were sold through OWFG and the amount of commissions received by OWFG while OWFG was unlicensed.
In addition, on the 2023 Corporate Licence Renewal, Hinkson represented to FSRA that he and OWFG had not been subject to discipline and were not currently the subject of an investigation by a regulatory authority in Ontario or elsewhere.
The Director is satisfied that Hinkson contravened subsection 447(2)(a) of the Act by giving misleading and incomplete information to FSRA with respect to the number of insurance policies that were sold through OWFG and the amount of commissions received by OWFG while OWFG was unlicensed.
The Director is also satisfied that Hinkson contravened subsection 447(2)(a) of the Act by giving false information to FSRA on the 2023 Corporate Licence Renewal.

IV. GROUNDS TO REFUSE TO RENEW LICENCES

Section 392.4(1) of the Act states that the Chief Executive Officer shall issue a licence to act as an insurance agent in Ontario to an applicant who applies in accordance with section 392.3 of the Act and who satisfies the prescribed requirements for the licence unless the Chief Executive Officer believes, on reasonable grounds, that the applicant is not suitable to be licenced having regard to such circumstances as may be prescribed and such other matters as the Chief Executive Officer considers appropriate.
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.
Section 7(4) of Ontario Regulation 347/04 permits the Chief Executive Officer to refuse renewal of an insurance agent licence on any grounds for which a licence may be suspended or revoked.
Section 8 of the Ontario Regulation 347/04 permits the Chief Executive Officer to suspend a licence on any grounds on which an application can be refused or if it appears to the Chief Executive Officer that the licensee has:
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.
Hinkson has demonstrated incompetence or untrustworthiness to transact insurance business and made material misstatements or omissions in his application for a licence.
Hinkson has shown a pattern of incompetence or untrustworthiness over many years and with regulators in both Ontario and Saskatchewan. Specifically:
1. In 2016, Hinkson failed to renew his licence before it expired. He knowingly acted as an agent without being licensed. He was cautioned by the regulator and reminded of his obligation to have a valid licence.
2. In 2022, the ICS proposed regulatory action against OWFG because Hinkson failed to comply with his regulatory obligations in Saskatchewan. Hinkson failed to ensure that OWFG maintained the prescribed financial security requirements. Hinkson entered into a settlement with the ICS.
3. After the expiry of Hinkson’s licence in 2023, FSRA explicitly asked Hinkson to confirm that he would not conduct insurance business until he received his licence. Hinkson confirmed to FSRA that he would not conduct insurance business. He then proceeded to conduct insurance business while unlicensed.
4. Hinkson disregarded multiple reminders sent to him regarding the expiry of OWFG’s licence and allowed OWFG’s licence to lapse despite actively conducting insurance business through OWFG while OWFG was unlicensed.
5. OWFG solicited insurance on behalf of Manulife while unlicensed, selling five insurance policies, and receiving approximately three million dollars in commissions.
6. Hinkson and OWFG also contravened the Act by providing misleading and incomplete information to FSRA with respect to the number of insurance policies that were sold through OWFG and the amount of commissions received by OWFG while OWFG was unlicensed.
7. Hinkson also made a material misstatement or omission on the 2023 Corporate Licence Renewal by falsely indicating that OWFG had not been subject to discipline and was not currently the subject of an investigation by a regulatory authority in Ontario or elsewhere. Hinkson made this false statement despite declaring that he had truthfully answered all the questions on the application.
The insurance agent licencing regime provided in the Act is a critical and necessary component in protecting the public interest. The public is entitled to have confidence that the licensing regime will only allow properly qualified and licensed agents to solicit, negotiate and place insurance. Hinkson’s conduct displays a disregard for the insurance agent licencing regime, for his legal obligations, and for compliance with his regulators.
FSRA must assess suitability keeping in mind that the purpose of licencing is to ensure that consumers receive competent and ethical insurance brokering services from those licenced 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.
The Director believes, on reasonable grounds, that Hinkson and OWFG are not suitable to be licenced. Hinkson and OWFG have not adhered to their regulatory obligations over many years and in different jurisdictions. Hinkson and OWFG acted as agents while unlicensed, made a material misstatement or omission on a licence renewal application and provided false or misleading information when responding to questions from FSRA.

V. GROUNDS FOR IMPOSING ADMINISTRATIVE PENALTIES

The Director is satisfied that imposing administrative penalties on Hinkson and OWFG under section 441.3(1) of the Act will satisfy one or both of the following purposes under section 441.2(1) of the Act:
1. To promote compliance with the requirements established under the Act.
2. To prevent a person from deriving, directly or indirectly, any economic benefit as a result of contravening or failing to comply with a requirement established under this Act.
The Director is satisfied that two administrative penalties totaling $60,000 should be imposed on Hinkson:
1. An administrative penalty of $50,000, for contravening subsection 2(1) of Ontario Regulation 347/04 by acting as an agent without being licenced under the Act; and
2. An administrative penalty of $10,000, for contravening section 447(2)(a) of the Act by directly or indirectly furnishing false, misleading or incomplete information to the authority.
The Director is also satisfied that one administrative penalty totaling $50,000 should be imposed on OWFG for contravening subsection 2(1) of Ontario Regulation 347/04 by acting as an agent without being licenced under the Act.
In determining the amount of the administrative penalties, the Director has considered the following criteria as required by section 4(2) of Ontario Regulation 408/12:
1. The degree to which the contravention or failure was intentional, reckless or negligent.
2. The extent of the harm or potential harm to others resulting from the contravention or failure.
3. The extent to which the person or entity tried to mitigate any loss or take other remedial action.
4. The extent to which the person or entity derived or reasonably might have expected to derive, directly or indirectly, any economic benefit from the contravention or failure.
5. Any other contraventions or failures to comply with a requirement established under the Act or with any other financial services legislation of Ontario or of any jurisdiction during the preceding five years by the person or entity.
In respect of the first criterion, the Director is satisfied that Hinkson’s actions were either intentional or displayed a reckless disregard for his responsibilities as a life insurance agent.
Hinkson was a very experienced life insurance agent and was aware of the obligation to renew his licence and that of OWFG and of the obligation on both of them to be licenced before soliciting insurance or transmitting policy applications to an insurer.
Hinkson had already encountered this same situation in 2016 when he acted as an insurance agent without being licenced and received a caution from FSRA.
Moreover, Hinkson knew that his personal licence expired on January 30, 2023, and explicitly confirmed with FSRA that he would not do business as an insurance agent until his licence was renewed. He knowingly continued to act as an agent and hold himself out as such despite being unlicensed and despite his commitment to FSRA to not do so.
Hinkson also knew, or should have known, that OWFG’s corporate agent licence had expired. The OWFG FSRA Reminders were sent to Hinkson on January 7, February 6, February 21, and March 8, 2023. However, Hinkson allowed OWFG to continue to act as an agent and hold itself out as such despite being unlicensed.
Hinkson’s furnishing of false, misleading, and incomplete information to FSRA was repeated and intentional. Hinkson’s response to FSRA’s enquiry only provided information on a subset of the policies that were solicited and sold by OWFG while it was unlicensed. Hinkson’s response also failed to disclose over one million dollars in commissions that were paid to OWFG while it was unlicensed.
Furthermore, Hinkson either intentionally or recklessly failed to disclose the disciplinary action that was taken against him by ICS on the 2023 Corporate Licence Renewal, despite being cautioned about the importance of providing full and accurate information and declaring that he had done so.
In respect of the second criterion, the Director is satisfied that Hinkson’s unlicensed activities harmed the public interest.
The public relies on the regulatory regime established by the Act and its regulations and is entitled to have confidence that regulated activities are carried on by persons who are duly licenced to do so. The insurance agent licencing scheme provided in the Act is therefore a critical and necessary component in protecting the public interest.
Insurance agents voluntarily choose to engage in a business that requires a licence and is subject to regulation under the Act. Unlicensed activities undermine the protections of the Act, including the requirement that insurance agents adhere to standards of conduct such as education and maintenance of errors and omissions insurance.
In addition, Hinkson’s furnishing of false, misleading and incomplete information to FSRA harmed the public interest.
FSRA relies on fulsome and complete disclosure by licensees in their communications and regulatory filings. FSRA uses information provided by licensees to assess their continued suitability to be licenced. By providing false, misleading, and incomplete information to FSRA, Hinkson undermined FSRA’s regulatory effectiveness and placed the public at risk.
In respect of the third criterion, the Director is unaware of any steps taken by Hinkson and OWFG to remedy the contraventions described in this proposal.
In respect of the fourth criterion, the Director is satisfied that Hinkson and OWFG gained significant financial benefit from his and OWFG’s unlicensed insurance agent activity.
OWFG received approximately three million dollars in commissions on the life insurance polices that were sold while Hinkson and OWFG were unlicensed. Hinkson is the sole Director, Officer, and owner of OWFG.
In respect of the fifth criterion, the Director has considered that OWFG was sanctioned by the ICS in April 2023 for contravening the insurance legislation in Saskatchewan.
The sanction imposed on OWFG by the ICS demonstrates that OWFG’s pattern of non-compliance is pervasive and requires a significant penalty to avoid future non-compliance and send a message to other insurance agents that licencing requirements and providing false information to FSRA will be taken very seriously.
Such further and other reasons as may come to my attention.

DATED at Toronto, Ontario, July 23, 2025

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

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.