This provision sets administrative penalty rules, including who may set the amount, the maximum amounts, and when penalties must be paid.
General Administrative Penalties Imposed under Section 14.4 of the Act Prescribed provisions 1. The provisions of the Act that are listed in Schedule 1 are prescribed for the purpose of imposing a general administrative penalty under section 14.4 of the Act. O. Reg. 409/12, s. 1. Maximum penalty 2. The maximum penalty that may be imposed under section 14.4 of the Act for a contravention of or failure to comply with a requirement imposed by a provision listed in Schedule 1 is, (a) $100,000 for a person other than an individual; (b) $50,000 for an individual. O. Reg. 409/12, s. 2. Determination of amount of penalty 3. (1) The Chief Executive Officer is authorized to determine the amount of a penalty imposed under section 14.4 of the Act, subject to the limits set out in section 2. O. Reg. 409/12, s. 3 (1). (2) The Chief Executive Officer shall consider only the following criteria when determining the amount of an administrative penalty to be imposed under section 14.4 of the Act for a purpose set out in section 14.3 of the Act: 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 tried to mitigate any loss or to take other remedial action. 4. The extent to which the person derived or reasonably might have expected to derive, directly or indirectly, any economic benefit from the contravention or failure. 5. Any other contraventions of 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. O. Reg. 409/12, s. 3 (2); O. Reg. 142/19, s. 1. Deadline for paying penalty 4. (1) A person on whom a penalty has been imposed under section 14.4 of the Act shall pay the penalty no later than 30 days after the person is given notice of the order imposing the penalty or such longer time as may be specified in the order. O. Reg. 409/12, s. 4 (1). (2) If a person requests a hearing on the notice of a proposal to impose a penalty pursuant to subsection 14.4 (2) of the Act and in accordance with subsection 441.3 (5) of the Insurance Act, the person shall pay the penalty no later than 30 days after the matter is finally determined or such longer time as may be specified in the order. O. Reg. 409/12, s. 4 (2). Summary Administrative Penalties Imposed under Section 14.5 of the Act Prescribed provisions 5. The provisions of the Act that are set out in Column 1 of Schedule 2 are prescribed for the purpose of imposing a summary administrative penalty under section 14.5 of the Act. O. Reg. 409/12, s. 5. Amount of penalty 6. The amount that is set out in Column 2 of Schedule 2 opposite a provision set out in Column 1 of Schedule 2 is the penalty that may be imposed under section 14.5 of the Act for a contravention of or failure to comply with a requirement imposed by that provision. O. Reg. 409/12, s. 6. Deadline for paying penalty 7. (1) A person on whom a penalty has been imposed under section 14.5 of the Act shall pay the penalty no later than 30 days after the person is given notice of the order imposing the penalty or such longer time as may be specified in the order. O. Reg. 409/12, s. 7 (1). (2) If a person appeals the Chief Executive Officer’s order pursuant to subsection 14.5 (2) of the Act and in accordance with subsection 441.4 (4) of the Insurance Act, the person shall pay the penalty no later than 30 days after the matter is finally determined or such longer time as may be specified in the varied or confirmed order. O. Reg. 409/12, s. 7 (2); O. Reg. 142/19, s. 2. 8. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 409/12, s. 8. Schedule 1 General Administrative Penalties Imposed under Section 14.4 of the Act — Lesser Maximum Penalties Prescribed Item Provision 1. subsection 6 (1) 2. subsection 6 (2) 3. subsection 7 (3.1) 4. subsection 7 (4) 5. subsection 12 (1) O. Reg. 409/12, Sched. 1. Schedule 2 Summary Administrative Penalties Imposed under Section 14.5 of the Act — Prescribed Penalty Item Column 1 — Provision Column 2 — Penalty 1. section 5 $3,000 2. subsection 8 (2) $1,000 3. subsection 10 (1) $1,000 O. Reg. 409/12, Sched. 2.