TICO Compliance and Enforcement 2

Question 1

TICO's compliance program includes unannounced audits of registered travel agencies. What is the primary purpose of these audits?

Accepted Answer

To verify that registrants are meeting their legal obligations including trust accounting and disclosure requirements

Answer

To generate audit fee revenue that funds TICO's operations

Answer

To assist registrants in updating their marketing materials

Answer

To evaluate whether registrants qualify for TICO's quality certification program

Question 2

A travel agent is found to have withdrawn client trust funds to pay personal expenses. Under TICO's enforcement framework, what is the most likely consequence?

Accepted Answer

Registration suspension or revocation and possible criminal charges for fraud

Answer

A written warning and a requirement to repay the funds within 60 days

Answer

A mandatory business ethics training course

Answer

A reduction in the agency's TICO quality rating

Question 3

A consumer files a complaint with TICO against a registered travel agent. What is TICO's role in resolving this complaint?

Accepted Answer

TICO investigates the complaint, mediates where possible, and takes enforcement action if the registrant violated the Act

Answer

TICO acts as an arbitrator and issues binding monetary awards to the consumer

Answer

TICO forwards the complaint directly to Ontario Small Claims Court without investigating

Answer

TICO's role is limited to providing educational resources; it cannot act against individual registrants

Question 4

TICO has the authority to impose conditions on a registrant's registration. Which of the following is an example of a registration condition?

Accepted Answer

Requiring a registrant to submit to quarterly trust account audits for a specified period

Answer

Requiring the registrant to immediately fire all non-compliant employees

Answer

Ordering the registrant to close their business for 30 days as a suspension

Answer

Requiring the registrant to donate to consumer protection charities

Question 5

A registrant who disagrees with a TICO enforcement decision may appeal to which body?

Accepted Answer

The Licence Appeal Tribunal (LAT)

Answer

The Ontario Superior Court of Justice directly

Answer

The Ontario Travel Industry Appeals Board

Answer

The Federal Competition Tribunal

Question 6

Under TICO's compliance framework, what obligation does a travel agent have if they become aware that a colleague is violating TICO's standards?

Accepted Answer

The agent should report the concern to the agency's broker of record or raise it through internal compliance channels, and may also contact TICO directly

Answer

The agent is not responsible for their colleagues' conduct and has no reporting obligation

Answer

The agent must file a police report before contacting TICO

Answer

The agent should document the violation and retain records for 10 years before reporting