New rules let clients of immigration consultants recover losses dating back to 2021

Understanding the Compensation Fund

The compensation fund operates as a separate account managed by the CICC, distinct from the College’s general operating budget. It is designed to provide a remedy for individuals who have been defrauded or ill-advised by a licensed consultant. To be eligible for compensation, an individual must meet specific criteria defined by the regulations:

• The victim must have hired a CICC licensee or reasonably concluded that the licensee had agreed to provide services.
• A formal complaint must have been filed through the CICC’s official complaints process.
• The CICC’s Discipline Committee must issue a finding on or after July 15, 2026, confirming that the financial loss resulted from a defined dishonest act.
• The victim must not have voluntarily participated in or contributed to the dishonest act.

Complaints that were closed prior to July 15, 2026, or duplicate complaints, are not eligible for the fund. The CICC is expected to publish further details regarding claim procedures and payment rules as the fund becomes fully operational. Furthermore, the regulations allow the College to pursue licensees to recoup disbursements made from the fund, including associated fees and expenses.

Defining Dishonest Acts

The regulations provide a specific definition of “dishonest acts” that qualify for compensation. These include:

• Theft, fraud, or the misappropriation of funds.
• Knowingly providing false or misleading information.
• Advising an individual to provide false or misleading information.
• Flouting procedures related to professional liability insurance, such as failing to report a claim or cooperate with insurers.

It is important to note that the fund is strictly for these defined acts. A refused immigration application resulting from a consultant’s general incompetence would not automatically qualify for compensation unless that refusal was directly caused by one of the specific dishonest acts listed above.

Expanded Regulatory Oversight

The July 15, 2026, implementation of these regulations—registered as SOR/2026-68—significantly expands the federal government’s oversight of the CICC. The regulatory package, which was first published as a draft in the Canada Gazette on December 21, 2024, introduces several structural changes to how consultants are monitored:

• Strengthened Discipline: The CICC now has the authority to impose monetary penalties of up to $50,000 for misconduct.
• Governance Reform: The regulations establish a Discipline Committee, a Complaints Committee, and a Capacity Evaluation Committee.
• Ministerial Authority: The federal immigration minister is now authorized to appoint an executive administrator to take control of the CICC board if it fails to fulfill its responsibilities.
• Reporting Requirements: The College must now submit annual reports to the federal government detailing complaints, fund activity, College finances, and membership composition.
• Enhanced Public Register: The CICC is required to display more detailed information regarding licensees, including disciplinary history and business names, with full implementation of these disclosures scheduled for April 2027.

Context for Immigration Applicants

In Canada, all individuals who accept payment for immigration advice or application preparation must be licensed. This applies to those licensed by a provincial or territorial law society, such as immigration lawyers, or those licensed by the CICC as Regulated Canadian Immigration Consultants (RCICs) or Regulated International Student Immigration Advisors (RISIAs). While the Canadian immigration system is designed to allow for self-representation, many applicants choose to hire professional representatives to navigate the complexities of the system. The new regulations aim to increase accountability for these professionals, ensuring that victims of fraud have a formal path to recovery while providing the government with clearer tools to enforce professional standards.

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