Canada has introduced new rules that strengthen protection for people who hire licensed immigration consultants. The updated regulations now allow eligible clients to seek compensation for financial losses caused by dishonest actions committed by licensed immigration consultants.

The new regulations came into effect on July 15, 2026, and require the creation of a compensation fund for clients of professionals licensed by the College of Immigration and Citizenship Consultants (CICC).

Eligible clients can claim compensation for losses caused by dishonest acts committed on or after November 23, 2021, the date when the CICC officially became Canada’s immigration consultant regulator.

Who Can Receive Compensation?

Under the new regulations, eligible clients may recover financial losses if they suffered because of dishonest actions by a licensed immigration consultant.

The regulations describe a dishonest act as knowingly giving false or misleading information or advising a client to provide false information during an immigration application.

Other dishonest actions include:

  • Theft.
  • Fraud.
  • Misuse of client funds.
  • Failure to follow professional liability insurance requirements.

To qualify for compensation, a person must have either hired a CICC licensee or reasonably believed that the consultant had agreed to provide immigration services.

Applicants must also show that they did not knowingly participate in or contribute to the dishonest activity.

How Will The Compensation Fund Work?

The new rules require the CICC to maintain a separate compensation fund for eligible claims.

When a claim is approved, compensation will be paid from this fund.

The regulations also allow the CICC to recover the amount paid from the licensed consultant responsible for the dishonest conduct. The College may also recover any related fees and expenses.

This new system aims to provide greater protection for clients while holding licensed consultants accountable for professional misconduct.

What Other Changes Have Been Introduced?

The new regulations also introduce several governance changes for the College of Immigration and Citizenship Consultants.

Three new committees have been established:

  • Discipline Committee.
  • Complaints Committee.
  • Capacity Evaluation Committee.

The College must also submit an annual report to the federal government.

The report will include information on:

  • Compensation fund cases.
  • Complaints made against licensees.
  • The College’s financial position.
  • Membership information.

In addition, Canada’s immigration minister now has the authority to appoint an executive administrator to manage the College if necessary.

When Did These Rules Take Effect?

The regulations officially came into force on July 15, 2026, after the required 90-day period following their publication in the Canada Gazette on April 16, 2026.

These changes were based on draft regulations that were first published in the Canada Gazette on December 21, 2024.

Why Do These Changes Matter?

Canadian immigration laws allow people to submit immigration applications without hiring a representative. However, many applicants choose to work with licensed immigration consultants because immigration programs and application requirements can be difficult to understand.

The new compensation fund gives clients added protection if they suffer financial losses because of dishonest actions by licensed consultants. At the same time, the updated rules strengthen oversight of the immigration consulting profession and help improve accountability across the system.

These measures are expected to increase public confidence while ensuring that licensed immigration consultants continue to meet professional and ethical standards.

Palina Immigration Consultancy, a Canadian immigration leader, promises excellence and tailored pathways for your Canadian journey. Get in touch with us at Palinaimmigration.com.