Compliance and Enforcement Flashcards

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

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

TICO conducts audits to verify compliance with legislative requirements, particularly trust accounting and consumer disclosure obligations.

A travel agent is found to have withdrawn client trust funds to pay personal expenses.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?

Answer: Registration suspension or revocation and possible criminal charges for fraud

Misappropriating client trust funds is a serious violation that can result in registration revocation and criminal prosecution for fraud.

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

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

TICO investigates consumer complaints, mediates disputes where possible, and takes enforcement action for violations of the Act.

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

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

TICO can impose registration conditions such as enhanced reporting requirements or audit obligations as a compliance tool short of full suspension.

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

Answer: The Licence Appeal Tribunal (LAT)

Registrants who disagree with TICO's enforcement decisions, such as registration refusals, suspensions, or revocations, may appeal to the Licence Appeal Tribunal.

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

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

Agents who become aware of violations should escalate through internal channels and may also report directly to TICO. The agency's broker of record is the primary point of accountability.