Bill 92: Quebec Takes Another Step Towards Modernizing Its Financial Sector Framework

On April 8, 2025, Quebec’s Minister of Finance, Eric Girard (Minister), tabled Bill 92, An Act to amend various provisions mainly with respect to the financial sector (Bill 92), before the province’s National Assembly. 

Bill 92 follows the Minister’s commitment made in November 2022 at the 17th Rendez-vous avec l’Autorité des marchés financiers (AMF) (a conference held annually by Quebec’s financial markets regulator) to regularly update the province’s legislation governing its financial sector by adopting a “financial omnibus bill” every year.

Bill 92 proposes various measures aiming to modernize, streamline and reinforce the framework of Quebec’s financial sector by amending several laws administered by the AMF. The laws being amended include the Act respecting the distribution of financial products and services (ADFPS), the Securities Act and the Insurers Act. This bulletin summarizes the key aspects of these amendments, focusing on those of particular interest to financial services providers.

Creation of the Chambre de l’assurance

One of the key measures in Bill 92 consists of amalgamating the Chambre de la sécurité financière and the Chambre de l’assurance des dommages (together, Old Chambers), into one: the Chambre de l’assurance (New Chamber). This New Chamber would carry out the functions previously performed by its predecessors, namely overseeing the mandatory continuing education, ethics and discipline of claims adjusters, financial planners and representatives in insurance of persons, group insurance and damage insurance, as well as representatives of mutual fund dealers and scholarship plan dealers.

However, the New Chamber’s oversight of representatives of mutual fund dealers and scholarship plan dealers would only be for a short period of time. Pursuant to Bill 92, the AMF would be required, within nine months of the New Chamber’s creation, to render a recognition decision withdrawing the exercise of the functions and powers of the New Chamber with respect to these representatives. While the AMF may decide to repatriate these powers, it will undoubtedly elect to transfer them to the Canadian Investment Regulatory Organization (CIRO). This choice would be logical and in line with other recent decisions of the AMF, including its decision in 2023 to delegate powers to CIRO with respect to the registration and inspection of representatives of mutual fund dealers to make them subject to the same regulatory framework that applies elsewhere in Canada.

The intent of Bill 92 appears to be to reduce the scope of the activities currently supervised by the Old Chambers to limit the responsibilities of the New Chamber to sector and sector classes that are outside of the area of securities. A transition committee established in accordance with provisions proposed in Bill 92 would oversee the transfer of the material, financial, human and documentary resources from the Old Chambers to the New Chamber. This will ensure the continuation of the Old Chambers’ activities, including their ongoing syndics’ inquiries and hearings of complaints before their discipline committees.

Expansion of the Scope of the Fonds d’indemnisation des services financiers

Bill 92 would repeal the provisions of the ADFPS that pertain to the Fonds d’indemnisation des services financiers (FISF) to integrate them into the Act respecting the regulation of the financial sector (ARFS) and broaden their scope.

Currently limited to victims of representatives holding a certificate in the sector of insurance, claims adjustment, financial planning and mortgage brokerage, as well as victims of representatives of mutual fund dealers and scholarship plan dealers,  the changes to Bill 92 propose that the FISF cover claims against representatives, dealers and advisers registered under the ADFPS, the Derivatives Act and the Securities Act, regardless of the sector or registration category.  The changes proposed by Bill 92 also provide that the FISF covers indemnities relating to financial products and services provided or offered by: 

• A trainee holding a certificate delivered pursuant to the ADFPS, or
• A person employed by a registrant in the claims adjustment sector that carries out functions under the supervision of the registrant or acts on behalf thereof, with respect to a claim provided for by the direct compensation agreement, or from a glass breakage or for the settlement of a claim not exceeding C$5,000

By broadening the scope of the FISF, the Quebec government would also expand the number of registrants required to contribute to the FISF. This would ensure the FISF’s sustainability, given that some of the current contributors (namely, representatives of dealers registered in the sector of mutual fund and scholarship plans) could be transferred under the jurisdiction of CIRO if Bill 92 is adopted.

Targeted Relaxation of Requirements for Claims Adjusters

Bill 92 proposes targeted relaxation of requirements applicable to the claims adjustment sector, following the measures enacted on May 9, 2024, by the Act to amend various provisions mainly in the financial sector to address the shortage of claims adjusters. For a summary of these measures, please see our July 2024 Blakes Bulletin: Quebec’s Bill 30 Addresses Two Major Areas of Concern in the Financial Services and Insurance Sectors.

The large number and value of claims submitted to insurers in August 2024 following the record rainfall from Hurricane Debby in southern Quebec likely led the Minister to conclude that these measures were insufficient to enable the industry to adequately meet the needs of insured persons when an extreme weather event occurs.

Bill 92 proposes additional measures to address this issue. It would grant the AMF the authority to allow, on an exceptional basis and for a given period, the settlement of claims for amounts exceeding C$5,000 by persons authorized under the ADFPS to electronically handle high-volume, low-dollar-value claims under the supervision of a certified claims adjuster.

Bill 92 also proposes that the AMF may authorize the following persons to act as claims adjusters in Quebec, subject to the conditions it determines: 

• Damage insurance representatives (agent or broker) holding a certificate authorizing the pursuit of activities as such agents or brokers
• Persons who previously held a certificate authorizing the pursuit of activities as a claims adjuster
• Persons authorized to pursue activities as claims adjusters outside Quebec

Changes to Governance and Disclosure Requirements

Bill 92 introduces changes to governance and transparency requirements applicable to certain registrants.

Bill 92 proposes to tighten one of the disclosure requirements applicable to all damage insurance brokerage firms that are registered with the AMF and offer automobile and home insurance products directly to the public. Pursuant to this revised requirement, a damage insurance brokerage firm would be required to disclose the following information in its written communications inviting the public to purchase insurance products (Written Communications): the name of the financial institution that holds an interest representing more than 20% of the value of the brokerage firm’s equity capital, as well as the name of the financial group, when a legal person related to this financial group holds an interest representing more than 20% of the firm's equity value. 

Currently, a damage insurance brokerage firm is required to disclose in its Written Communications the name of any legal person that holds an interest in shares issued by such brokerage firm representing more than 20% of that firm’s equity capital or, if such legal person is related to a financial institution, the name of that financial group. It should be noted that pursuant to the ADFPS, a financial institution, a financial group or a legal person related to a financial institution or a financial group may not hold more than 50% of the value of the equity capital of a damage insurance brokerage firm registered with the AMF.

Bill 92 also provides that the requirement for the composition of the board of directors of insurance companies incorporated in Quebec, whereby half of the directors must be residents of Quebec, would be reduced to one third if the following criteria are met: the insurance company belongs to a financial group, more than 40% of the premiums are collected by the group outside Quebec and the majority of the directors reside in Canada.

Furthermore, Bill 92 specifies that the AMF may, by regulation, impose governance standards with respect to risk management, compliance and commercial practices that would apply to firms, independent partnerships and independent representatives.

New Powers of the AMF and the Financial Markets Administrative Tribunal

Bill 92 would strengthen the powers of the AMF and the Financial Markets Administrative Tribunal (FMAT) by increasing penalties to which financial sector participants are exposed in the event of non-compliance with the provisions of several sector-specific laws, including those governing insurers, financial services cooperatives, deposit institutions and trust companies.

Bill 92 would increase the fines applicable for violations of several legislation administered by the AMF. Additionally, the FMAT would have the authority to impose administrative monetary penalties (AMPs) on insurers, financial services cooperatives, savings companies and trust companies for non-compliance with the requirements of applicable legislation, of up to C$2-million per day for each day during which the contravention continues. Finally, the FMAT would have the authority to impose AMPs on anyone who aids in the contravention of a provision of such legislation.

Next Steps

The next stage in the consideration of Bill 92, the adoption in principle, should be completed by the upcoming sessions of the National Assembly. Bill 92 would then likely be brought before the Committee on Public Finance, whose members would meet with stakeholder groups and study the bill in detail. Given the nature of the proposed amendments, we anticipate Bill 92 to receive assent, at the earliest, by the end of the next parliamentary session in early December 2025.

Once Bill 92 has been adopted, draft regulations will be released to fully implement the proposed amendments, and such regulations will be subject to a consultation period before being enacted.

For more information, please contact the authors or any other member of our Financial Services Regulatory group.