TICO - Travel Industry Council of Ontario Compliance and Enforcement Questions and Answers 1 — Questions and Answers
Question 1: A TICO inspector arrives at a registered travel agency to conduct an inspection. The agency manager must ensure that the inspector is given:
- A copy of the agency's most recent marketing materials only.
- Access to client booking files but not financial records.
- A verbal summary of the agency's financial standing.
- Prompt access to all records, documents, and computers as required. (Correct answer)
Correct answer: Prompt access to all records, documents, and computers as required.
Under the Travel Industry Act, 2002, a TICO inspector has the authority to enter a registrant's business premises at any reasonable time and examine all documents, records, and data storage devices relevant to the inspection. Registrants are legally obligated to assist the inspector and provide prompt access.
Question 2: An individual is convicted in court of operating as a travel agent without being registered with TICO. Under the Travel Industry Act, 2002, what is the maximum penalty this individual faces?
- A fine of up to $10,000 and a one-year probation.
- A fine of up to $50,000 and/or imprisonment for up to two years less a day. (Correct answer)
- A fine of up to $250,000.
- Mandatory industry-specific education and community service.
Correct answer: A fine of up to $50,000 and/or imprisonment for up to two years less a day.
Section 29(1) of the Travel Industry Act, 2002, specifies the penalties for offences. For an individual, the maximum penalty is a fine of not more than $50,000, or imprisonment for a term of not more than two years less a day, or both. The $250,000 fine is the maximum for a corporation.
Question 3: The TICO Registrar issues a 'Proposal to Revoke Registration' to a travel agency. The agency owner wishes to dispute this action. What is the owner's immediate formal right of recourse?
- To publish a public statement disagreeing with the Registrar.
- To request a new inspection by a different TICO official.
- To appeal directly to the Minister of Public and Business Service Delivery.
- To request a hearing before the Licence Appeal Tribunal (LAT). (Correct answer)
Correct answer: To request a hearing before the Licence Appeal Tribunal (LAT).
When the Registrar proposes to revoke a registration, the registrant has 15 days from receiving the notice to file a written request for a hearing with the Licence Appeal Tribunal (LAT), an independent body that hears appeals on such matters.
Question 4: A travel agent receives a $3,000 e-transfer from a client on Friday for a vacation package. According to the trust accounting rules in Ontario Regulation 26/05, what is the latest the agent must ensure this money is deposited into the agency's trust account?
- By the end of the day on Friday.
- Within 5 business days.
- Within 2 banking days. (Correct answer)
- Before the final payment is due to the supplier.
Correct answer: Within 2 banking days.
Section 27(3) of Ontario Regulation 26/05 mandates that a registrant must deposit all money received from customers for travel services into the designated trust account within two banking days of receipt.
Question 5: Which of the following actions can the Discipline Committee take if it finds a TICO registrant guilty of misconduct?
- Order the registrant to pay restitution to all affected clients.
- Require the registrant to successfully complete educational courses. (Correct answer)
- Order the registrant's business to be sold to another TICO registrant.
- Sentence the individual owner to a term of imprisonment.
Correct answer: Require the registrant to successfully complete educational courses.
Under Section 16 of the Travel Industry Act, 2002, the Discipline Committee has the authority to make various orders, including directing a registrant to complete educational courses, imposing fines, or suspending registration. Imprisonment is a penalty that can only be imposed by a court following a conviction for an offence under the Act.
Question 6: According to Ontario Regulation 26/05, what is the minimum period for which a travel agent must retain business records, such as invoices and bank statements related to the trust account?
- 2 years after the date of the transaction.
- 3 years after the client has returned from their trip.
- 6 years after the end of the fiscal year to which the records relate. (Correct answer)
- Indefinitely, for the life of the business.
Correct answer: 6 years after the end of the fiscal year to which the records relate.
Section 29 of Ontario Regulation 26/05 clearly states that a registrant must keep all business records, including those related to the trust account, for a minimum of six years after the end of the fiscal year in which the transaction occurred.
TICO - Travel Industry Council of Ontario Compliance and Enforcement Questions and Answers 1
A TICO inspector arrives at a registered travel agency to conduct an inspection.
The agency manager must ensure that the inspector is given: