Who typically establishes the code of conduct/ethics for brokers?

The code of conduct or ethics for brokers is typically established by provincial insurance councils. These councils play a critical role in regulating the insurance industry at the provincial level, setting standards that brokers are expected to follow. Their primary purpose is to ensure that brokers operate fairly and ethically, safeguarding the interests of consumers and maintaining the integrity of the insurance market.

Provincial insurance councils are also responsible for licensing brokers and handling disciplinary issues, which further emphasizes their authority in developing ethical guidelines. This regulatory framework ensures that brokers adhere to professional and ethical standards, promoting trust between brokers and their clients.

While other entities, such as the federal government and insurance associations, may influence regulations and provide guidelines, it is the provincial insurance councils that have the direct responsibility for implementing and enforcing a code of ethics specific to brokers within their jurisdiction. This ensures that ethics are tailored to the needs and realities of the local market and that brokers have clear directives to follow in their professional conduct.