Notice of Proposed Cease And Desist Order and Interim Cease and Desist Order Against Roland Spiegel

REGARDING the Insurance Act, R.S.O. 1990, Chapter I.8, as amended, in particular sections 31(1), 438, 441(2) and 441(4), and Ontario Regulation 7/00, in particular section 1¶1

AND REGARDING a Proposed Cease and Desist Order against Roland Spiegel

AND REGARDING an Interim Cease and Desist Order against Roland Spiegel

NOTICE OF PROPOSED CEASE AND DESIST ORDER

and

INTERIM CEASE AND DESIST ORDER

The Superintendent of Financial Services ("Superintendent") is of the opinion that Roland Spiegel has committed and is committing unfair or deceptive acts or practices while acting as a statutory accident benefit representative. The particulars are set out in the Report of the Superintendent appended as Appendix "A" to this Notice.

TAKE NOTICE THAT pursuant to section 441(2) of the Insurance Act (the "Act")  the Superintendent intends to order Roland Spiegel to:

A. cease carrying on business as a statutory accident benefit representative;

B. cease providing to anyone any service related to a claim for statutory accident benefits, whether or not a fee is charged for such services;

C. cease advertising or holding out to the public that services of any kind relating to claims for statutory accident benefits are offered or provided, whether or not a fee is charged for such services; and,

D. immediately notify in writing all clients of Roland Spiegel who have claims for statutory accident benefits that Roland Spiegel, and any of his agents or representatives, can no longer act for them, and provide them with a copy of the cease and desist order; and provide copies of every notification sent to each client to the Superintendent forthwith.

NOTE

WITHIN 15 DAYS after receiving this Notice, you may request in writing that the Financial Services Tribunal hold a hearing on whether or not a cease and desist order should be issued.

IF NO HEARING IS REQUESTED within 15 days, the Superintendent may make a cease and desist order in accordance with this notice, which shall take effect on the date set out in the order.

A request for a hearing should be directed, in writing, to:

Financial Services Tribunal
5160 Yonge Street
Box 85
Toronto, Ontario
M2N 6L9                                 

Attention: Rhonda Booth, Registrar  Fax: 416.226.7750

 

INTERIM CEASE AND DESIST ORDER

Pursuant to section 441(4) of the Act, if the Superintendent is of the opinion that the interest of the public may be prejudiced or adversely affected by any delay in the issuance of a permanent order, the Superintendent, without prior notice, may make an interim order which shall take effect immediately and which shall become permanent unless within 15 days of receipt of the interim order the named person requests a hearing before the Financial Services Tribunal.

The Superintendent is of the opinion that the interest of the public may be prejudiced or adversely affected by any delay in the issuance of a permanent order for the following reasons:

1.         A statutory accident benefit representative is obliged under the Code of Conduct for Statutory Accident Benefit Representatives to respond to a request for information from the Financial Services Commission of Ontario ("FSCO") fully and promptly.  This is a critical requirement in the regime that allows individuals to be exempted from the prohibition set out in section 398 of the Act, and allows them to act as statutory accident benefit representatives ("SABS representatives").  

2.         Despite being advised about the serious allegations against him, and despite repeated requests since January 8, 2006 for information about the allegations and a request to review his files, Roland Spiegel has not provided any information or documentation to date. Spiegel’s failure to comply with FSCO’s demands strikes at the very heart of  the regime to ensure confidence in the automobile insurance system.

3.         On October 16, 2006, the Divisional Court confirmed a decision of the Financial Services Tribunal which held that it is an unfair or deceptive act or practice for  a SABS representative not to disclose information or documents that the Superintendent has requested under section 31(1) of the Act or section 440 of the Act. The Divisional Court specifically held that a SABS representative has a duty under those sections to disclose information and documents, because a SABS representative is engaged in the business of insurance. 

4.         A FSCO investigator informed Spiegel of the decision of the Divisional Court in March2007.  Spiegel still refused to disclose the information and documents that the Superintendent requested under section 31(1) of the Act.

5.         Spiegel engaged in, and continues to engage in, an unfair or deceptive act or practice by failing to comply with the Superintendent’s request under section 31(1) of the Act for disclosure of information and documents.

Effective this date, pursuant to section 441(4) of the Act, the Superintendent orders that Roland Spiegel:

A. Immediately cease carrying on business as a statutory accident benefit representative;

B. Immediately cease providing to anyone any service related to a claim for statutory accident benefits, whether or not a fee is charged for such services;

C. Immediately cease advertising or holding out to the public that services of any kind relating to claims for statutory accident benefits are offered or provided, whether or not a fee is charged for such services; and

D. Immediately notify in writing all clients of Roland Spiegel who have claims for statutory accident benefits that Roland Spiegel, and any of his agents or representatives, can no longer act for them, and provide them with a copy of the Interim Cease and Desist Order; and provide copies of every notification sent to each client to the Superintendent forthwith.

AND FURTHER TAKE NOTICE THAT the above Interim Cease and Desist Order shall become permanent on the 15th day after you receive it, unless within 15 days a written request for a hearing before the Financial Services Tribunal is made.

AND FURTHER TAKE NOTICE THAT if a hearing is requested, the Superintendent may extend the Interim Cease and Desist Order until the hearing before the Financial Services Tribunal is concluded.

AND FURTHER TAKE NOTICE THAT section 447(2)(b) of the Act  provides that any person who fails to comply with any order made under the Act is guilty of an offence, and section 447(3) of the Act provides that a person convicted of an offence under the Act is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.

ISSUED AT the City of Toronto, August 16, 2007

____________________________
Robert Christie
Superintendent of Financial Services

TO:

Roland Spiegel
27 Vanity Crescent
Richmond Hill ON L4B 4E6