Earlier this year, the Bank of Montreal began selling a product called BMO Lifetime Cash Flow, which provided buyers 55 and older with guaranteed payments for life.

But Canadian banks are prohibited by law from selling most types of insurance in their branches, and a number of life insurers complained to regulators that the new BMO product was basically an annuity, the Globe and Mail reports.

In recent years, some banks have introduced products that perform the same or similar functions as life annuities, but these products are not subject to the same regulatory standards as those sold by insurers.

So shortly before Christmas, Canadian Finance Minister Jim Flaherty announced that the Conservative government now plans to introduce legislation to prevent banks from offering financial products that function like life annuities.

“Since taking office, this government has taken steps to clarify the separation of banking and insurance activities,” Flaherty said in a news release. “This will ensure the business of insurance continues to be subject to the appropriate rules and regulations.” Current federal legislation prohibits banks from promoting or selling life annuities, which are considered insurance products, Flaherty said.

“A BMO spokesman says the bank will now stop selling the product,” the Globe and Mail reports.

It’s no small issue for Canadian banks: As baby boomers age, many of them are expected to use annuity-like products to provide them with a regular retirement income stream.

Royal Bank of Canada has gone so far as begin building insurance offices right next to its bank branches, a strategy that other banks and credit unions have since adopted to deal with rules preventing them from selling insurance in their branches.

Flaherty said his legal changes will allow existing products to be grandfathered. But the government will “continue to monitor to ensure the enforcement of this policy,” said a Department of Finance spokesman.