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Canada launches compensation fund for victims of dishonest immigration consultants

Ottawa: Canada this week introduced a new regulatory framework for immigration consultants that allows clients to seek compensation for financial losses caused by dishonest licensed representatives, strengthening consumer protection and oversight of the country’s immigration consulting profession.

The new regulations, which came into force on July 15, establish a compensation fund for clients of professionals licensed by the College of Immigration and Citizenship Consultants (CICC). The fund enables eligible individuals to recover losses resulting from dishonest conduct by licensees committed on or after November 23, 2021, when the CICC officially became Canada’s immigration consultant regulator.

Under the regulations, dishonest conduct includes knowingly providing false or misleading information, advising clients to submit false information, theft, fraud, misappropriation of client funds and violations of professional liability insurance requirements.

To qualify for compensation, applicants must have retained a CICC-licensed immigration consultant or reasonably believed that the consultant had agreed to provide professional services. Clients who voluntarily participated in or contributed to the dishonest conduct are not eligible for compensation.

The regulations require the CICC to maintain a dedicated compensation fund separate from its other finances. The College is also empowered to recover compensation payments, along with associated costs and expenses, from consultants found responsible for misconduct.

The regulatory overhaul also introduces stronger governance measures for the CICC, including the establishment of dedicated Discipline, Complaints and Capacity Evaluation Committees to improve professional accountability and public confidence in the immigration consulting sector.

In addition, the College will be required to submit an annual report to the federal government detailing the operation of the compensation fund, complaints against licensees, the organization’s financial position and membership composition.

The new framework also grants Canada’s immigration minister the authority to appoint an executive administrator to temporarily assume control of the College in place of its governing board if necessary.

The regulations took effect after a 90-day implementation period following their publication in the Canada Gazette on April 16, 2026. They stem from draft regulations first released for public consultation in December 2024.

Under Canadian law, individuals who charge fees for immigration advice or representation must be licensed either by a provincial or territorial law society, such as immigration lawyers, or by the College of Immigration and Citizenship Consultants as Regulated Canadian Immigration Consultants (RCICs) or Regulated International Student Immigration Advisors (RISIAs).

While Canada’s immigration system allows applicants to represent themselves, many choose to seek professional assistance to navigate the country’s complex immigration laws and procedures, making stronger oversight of licensed consultants an important safeguard for prospective immigrants.