The regulator announced the news on Wednesday after the first 50 percent prorated payments began flowing to claimants last month.
Funds from RECO’s insurance program stability fund are placed in a protected trust to address the deficit resulting from the crisis misappropriation of trust funds by the clients of iPro.
“RECO enables the full payment of all eligible commission protection claims,” administrator and acting CEO Jean Lépine said in a statement, adding that the move is intended to limit financial harm to registrants while recovery efforts move through the courts.
iPro’s collapse left hundreds of agents without commission on deals that had already closed, leading to claims under the industry’s mandatory commission protection program.
Based on claims received in mid-December, expected total losses are approximately $30 million, according to the insurance program manager.
As of RECO’s last update on January 6, RECO was processing 2,650 claim forms.
Recovery efforts
RECO and the insurer have pursued various recovery options, including civil lawsuits and requests for access to frozen iPro trust accounts. A court recently approved the release of some funds for commission payments, which RECO described as an important step forward. More applications are expected.
Ontario Minister of Public and Business Services and Procurement Stephen Crawford said the province has directed RECO to take action to ensure registrants do not absorb the losses.
“By ensuring that every eligible commission protection claim is paid in full in accordance with the insurance program, we are putting registrants first,” said Crawford.
Additional payments could begin as soon as next week
As with the first round of payments, claimants must complete and return release documents before any funds can be issued. The timing of individual payments will depend on how quickly these forms are submitted and processed.
RECO said additional payments could begin as early as next week, once claims are finalized.
The insurer continues to review and verify claims, which RECO says is done to ensure payments are accurate and legitimate.
Civil proceedings aimed at recovering money from iPro’s former operators will continue alongside the payment process, RECO said.
Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has more than a decade of experience covering daily business news.
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