The Financial Services Regulatory Authority of Ontario (FSRA) is consulting on this matter proposed statement of priorities for the 2022-2023 financial year and financial plan– the regulator said in a statement on Thursday.
The announcement said the proposed priorities include cross-sectoral and sector-specific initiatives, with a continued focus on improving regulatory efficiency and effectiveness. The updates include a greater focus on public protection.
In the life and health insurance sector, the regulator considers strengthening supervision of market conduct to be a high-impact priority.
Related deliverables include the publication of a proposed framework and supervisory approach for managing general agencies, the development of total cost reporting requirements for segregated funds, and capacity building for insurance distribution oversight, including agent oversight.
In the financial planner and financial advisor space, a high-impact priority is operationalizing title protection for “financial planner” and “financial advisor.”
Related deliverables from this initiative include receiving applications from accreditation bodies and implementing an oversight framework for these bodies, as well as implementing a consumer education campaign.
The proposal said the regulator’s proposed plan cost of about $109 million was 5.2% higher than the previous fiscal year’s budget. Items where costs increased included $3.8 million in new on-demand investments to close regulatory gaps and prepare for new regulatory actions.
Proposed total sector revenues showed a net increase of 6.7%, or $6.7 million, over the previous fiscal year’s fiscal year revenues.
While most sectors will see an increase in fees, the financial planners/advisors sector will see the greatest decline in fees “as we move from launch to maintenance of regulation,” the proposal says.
The consultation will close on October 29 and the views will be used alongside consultations with FSRA’s stakeholder committees and the Consumer Advisory Panel.
