TORONTO — TICO has issued a registrar bulletin with a heads-up about several regulatory amendments.
Among the updates, TICO is extending several temporary regulatory amendments were enacted at the start of the pandemic in early 2020, aimed at maintaining consumer protection, while addressing industry challenges by reducing the burden on registrants.
With that in mind, TICO says it will continue to temporarily exempt registrants from filing Annual Financial Statements, and temporarily extend registrants’ ability to issue travel vouchers.
Consumers’ eligibility to claim unredeemed vouchers through the Compensation Fund remains unchanged.
“While there is renewed optimism that brighter days are on the horizon, it will take time to restore consumer confidence and for the travel industry to fully rebound,” said Richard Smart, TICO’s President and CEO.
“The industry has endured severe hardships over the last two years and it’s important that we continue to assist registrants, while ensuring consumer protection, during this crucial recovery period.”
Smart notes that throughout the COVID-19 pandemic, TICO has worked closely with the Ontario government to provide flexibility, support and burden relief for Ontario’s travel agencies and wholesalers.
Here’s a look at the burden relief measures that will be extended:
Temporarily exempting registrants from filing Annual Financial Statements. Continue to reduce administration and expenses associated with financial reporting.
- . Providing an exemption for two additional years from the requirement to file an annual financial statement, accompanied by a review engagement report or audit opinion, for registrants with annual Ontario sales greater than $2 million. Only a verification statement needs to be filed, subject to the exception listed below, says TICO.
- . This exemption covers the above registrants with fiscal year-end dates until Nov. 30, 2024.
- . For registrants with annual Ontario sales less than $2 million, a permanent regulatory amendment was made on March 30, 2020, allowing a verification statement to be sufficient in most cases, subject to the exception listed below.
- . The exemption would not apply if the registrant is required for any other reason to prepare an annual financial statement for a fiscal year that ends during that period and the annual financial statement is accompanied by either a review engagement report or an audit opinion, prepared by a public accountant licensed under the Public Accounting Act, 2004. In that case, the financial statements and review engagement report or audit opinion shall be provided to TICO and a verification statement would not be acceptable.
Temporarily extending registrants’ ability to issue travel vouchers. Continue to offer flexibility during the COVID-19 recovery period.
- . Registrants who acquire the rights to travel services for resale can continue for an additional year (until March 31, 2023) to choose to provide a voucher or similar document for future redemption towards travel services.
- . The voucher or similar document provided would be in lieu of a refund or comparable alternate travel services acceptable to the customer if a supplier (e.g., airline or cruise line) fails to provide the travel services on or after March 30, 2020 and that failure is related to COVID-19.
Consumers’ eligibility to claim unredeemed vouchers through the Compensation Fund remains unchanged.
- If a consumer is unable to redeem a voucher or similar document issued by a TICO-registered travel agency, website or tour operator (does NOT include a voucher issued directly by an end supplier to a customer, including airline, cruise line or hotel) for future travel services because of a registrant failure associated with COVID-19, the consumer may be eligible for reimbursement under the Travel Industry Compensation Fund until March 31, 2024.
The regulatory changes can be found on the e-laws website: https://www.ontario.ca/laws/regulation/r22143
TICO will continue to temporarily exempt registrants from filing Annual Financial Statements, and temporarily extend registrants’ ability to issue travel vouchers
