Quick Answer
Ontario insurance brokers are regulated by the Registered Insurance Brokers of Ontario (RIBO), which as a general principle expects brokerages to hold client and insurer premium in trust, keep it separate from operating funds, and report financial information. The specific rules — including reconciliation expectations, thresholds, and reporting — are set by RIBO and can change, so confirm the current requirements that apply to your brokerage directly with RIBO.
In Ontario, insurance brokers are licensed and regulated by the Registered Insurance Brokers of Ontario (RIBO). RIBO sets the rules for how Ontario brokerages handle client money and report their finances.
The general principle — common across Canadian broker regulators — is straightforward:
- Premium belonging to clients and insurers is held in trust, separate from the brokerage’s operating funds.
- The trust account is reconciled regularly so the brokerage can show that the money held covers what it owes out of trust.
- Brokerages report financial information to the regulator as required.
What this answer deliberately does not do is quote specific dollar thresholds, deadlines, reconciliation frequencies, or rule sections. Those specifics are set by RIBO, they can change, and they are exactly the kind of detail you should not take from a third-party summary. For the current requirements that apply to your brokerage, confirm directly with RIBO.
If you operate outside Ontario, your regulator is different — the Insurance Council of BC, the Alberta Insurance Council, the AMF in Quebec, or another provincial body — and its rules will differ too.
The accounting discipline underneath all of this is constant no matter the province: reconcile trust on a defined schedule (monthly is sound practice), document it, and always know your trust position. For how that fits into your broader obligations, see our guide to Canadian brokerage financial compliance.
Related questions
Does RIBO require a separate trust bank account?
The general principle across broker regulators is that client and insurer premium is held separately from operating funds in a trust account and reconciled regularly. The exact account structure and reconciliation requirements are set by RIBO and may change, so confirm the current rules directly with RIBO rather than relying on a general description.
How often must an Ontario brokerage reconcile its trust account?
Frequency and reporting requirements are set by the regulator and can vary, so confirm the current expectation with RIBO. From an accounting standpoint, reconciling trust monthly is a sound practice regardless, because it means you always know whether trust covers what you owe.
Sources
Go deeper
Pillar guide
Canadian Insurance Brokerage Financial Compliance: A Practical Guide
Last Updated: May 2026
Sources reviewed: May 23, 2026. General information only — confirm with your CPA or your provincial broker regulator before acting.