Update on FSRA – the New Financial Services Regulatory Authority in Ontario
The Board of Directors of Ontario’s new financial services and pension regulator, FSRA, has appointed Mark White as their Chief Executive Officer. Mr. White’s mandate is to modernize and transform Ontario’s financial services regulations with the goal of improving consumer and pension plan beneficiary protections.
The sectors affected are:
- property and casualty insurance
- life and health insurance
- credit unions and caisses populaires
- loan and trust companies
- mortgage brokers
- health service providers (related to auto insurance)
- pension plan administrators
FSRA is working to become fully operational by April 2019 and is now focusing on establishing its organization and making plans to assume the regulatory functions currently owned by other Ontario agencies.
Becoming operational includes establishing:
- goals related to consumer and pension plan beneficiary protection, deterrence of deceptive or fraudulent conduct, and cooperation and collaboration with other regulators
- specific categories of rule-making authority, with flexibility in its approach to regulating insurance (including auto), pensions and mortgage brokers
- the ability to set a funding framework, similar to the authority currently given to the Ontario Securities Commission
- the process by which FSRA can make rules, which would involve substantial public notice and consultation.
What does this mean to you?
Sponsors of Registered Pension Plans may see new policies established to increase compliance to the Pension Benefits Act regulations and an increase in penalties assessed for non-compliance and late filing fees as a means to increase pension plan beneficiary protections.
We will provide you with updates as FSRA gets organized.