RECO’s insurer handling the iPro event, has indicating that commissions will start being paid effective 17 December 2025.
They state on 15 December 2025:
“For clarity, as of today’s date, the combination of the $4 million insurance limits plus amounts expected to be available in the frozen iPro accounts are only sufficient to cover 50 per cent of the estimated total commission claim amounts.”
Further:
“On a pro-rated basis, claimants will begin to receive 50 per cent of their eligible claim amounts, beginning Wednesday, December 17, 2025.
To expedite this process, the claims adjuster, ClaimsPro LP, will contact claimants as early as December 15, 2025, to obtain documentation necessary to complete payment. Claims will be processed as quickly as possible, subject to the completion of all documentation, and eligibility.
A $250 deductible applies per individual and not per claim form or transaction and is deducted from the claim payout. If your claim is made up of more than one transaction, you may receive multiple payments. The deductible will be deducted from the first payment.
Under the terms of the insurance program, individual claims (from all affected commissions combined) are limited to $200,000.
Example:
Eligible claim of $15,000
Pro-rated amount at 50 per cent is $7,500, less the $250 deductible = $7,250 claim payment.
Note that insurance claim payments do not include the HST. Please contact your accountant if you have any tax-related questions.”
Hopefully, there will be more money to come, but likely this is the amount of recovery, basically 50%, without the HST, which still may be owed to the CRA.
So, in this example, ordinarily, the agent would receive and additional $1,950.00 for the HST. Depending upon the position taken by the CRA, the agent in this example may only be left with $5,300.00.
When RECO discovered the problem, the impact would likely have been substantially less.
RECO’s insurer also stated:
“Based on the claims received to date, we can now project the total losses submitted as claims to be approximately $30 million. This amount may be refined as we complete our assessment of the remaining claims; however, based on experience and the review to date, there is a high level of confidence in this projection.”
In May 2025, there was a $10 million problem. Now, we seem to have a $30 million problem. If that was caused by reason of the RECO delay, then agents may have a right to recover additional funds directly from RECO.
- Claims prior to 25 May 2025 would be subject to insurance claims and may be compensated at the 50% rate.
- Claims subsequent to 25 May 2025 while RECO was in charge, should have been collected in full and remitted in full.
Brian Madigan LL.B., Broker