TICO Compliance and Enforcement 5

Question 1

Under the Travel Industry Act, 2002, which of the following individuals is considered a 'registrant' subject to TICO's compliance and enforcement authority?

Accepted Answer

An Ontario-based operator selling travel packages directly to consumers

Answer

Under the Travel Industry Act, 2002, operators who sell travel services directly to consumers in Ontario must be registered with TICO and are subject to its enforcement authority.

Question 2

A TICO registrant self-discloses a compliance breach to TICO before it is discovered during an audit. How does TICO typically treat voluntary self-disclosure?

Accepted Answer

Voluntary disclosure may be considered a mitigating factor in determining penalties

Answer

Voluntary self-disclosure of compliance issues is generally viewed as a mitigating factor by TICO, potentially resulting in reduced penalties compared to violations discovered through audit.

Question 3

A travel agent continues selling travel services after their individual TICO registration has lapsed. Under the Travel Industry Act, 2002, this individual is:

Accepted Answer

Acting illegally and subject to prosecution and fines

Answer

Selling travel services without a valid TICO registration is illegal under the Travel Industry Act, 2002, and can result in prosecution and significant fines.

Question 4

TICO's compliance monitoring includes reviewing trust account records. Which of the following would be a RED FLAG in a trust account audit?

Accepted Answer

Client funds being withdrawn before travel services are fully delivered and supplier invoices paid

Answer

Withdrawing client funds from trust before services are delivered and suppliers are paid is a serious violation indicating possible misappropriation of trust funds.

Question 5

During a TICO compliance review, an inspector discovers that a travel agency is not providing written contracts to consumers for travel packages over $100. This is:

Accepted Answer

A violation of TICO's mandatory disclosure requirements

Answer

TICO's regulations require registrants to provide written contracts containing specific mandatory disclosure information for travel packages, regardless of how the booking is made.

TICO - Travel Industry Council of Ontario Practice Test

TICO - Travel Industry Council of Ontario Practice Test

TICO Compliance and Enforcement 5