Laws and Regulations Applicable to the Travel Industry - Institut de ...

Did you know that…
The travel agent or the surety may
terminate the security by notifying
the OPC President in writing
at least 90 days in advance.
Even when expired, the security
continues to apply for a period
of 3 years following its official
cancellation date to obligations
contracted while it was in force.
2.2.2 How is this security provided?
Obtaining a general travel agent licence is conditional upon the provision of
an individual security. There are five ways to provide an individual security:
1. from an insurance company selling you an individual security policy.
You will have to pay a premium based on the amount of the policy.
The company issuing the security policy will complete the form entitled
“Individual Security Policy” appearing in Schedule CC.
2. by depositing the amount in cash;
3. by depositing bearer bonds that you own;
4. by asking someone else to deposit the money on your behalf;
5. by asking someone to deposit bearer bonds that that he owns
on your behalf.
In the last 4 cases, you must complete the form entitled “Engagement
du commerçant” [Merchant’s Undertaking] available on the OPC
website.
If the security is provided in the form of bearer bonds, you must also pay
a fee of $250 to cover administrative fees.
2.2.3 How much to provide?
To obtain the general licence, the individual security amount you must
provide varies between $25,000 and $225,000.
When applying for a general licence in the first year of operation, you must
provide a security of $25,000.
Once each year, on your licence anniversary, the individual security amount
is determined according to your turnover as indicated in your last financial
statements, and the number of years you have been in operation.
Example: Your fiscal year ends on April 30, 20XX
Your sales for the fiscal year ending on April 30, 20XX are:
$1.9 million.
Accordingly, you must provide a $40,000 individual security
for the second year of operation.
Table 2.1 shows the individual security amount to provide on the basis of
your turnover.
20 20 Laws and Regulations Applicable to the Travel Industry: Textbook for Travel Professionals