Effective June 8, 2019, a new financial services regulator – the Financial Services Regulatory Authority of Ontario (FSRA) – has started operating in Ontario.

FSRA regulates Ontario’s insurance sector, pension plans, loan and trust corporations, credit unions and caisses populaires, mortgage brokers and service providers who invoice auto insurers for statutory accident benefit claims.

FSRA replaces the Financial Services Commission of Ontario (FSCO) and the Deposit Insurance Corporation of Ontario as an integrated, independent and self-funded regulator for financial services and pensions. Its approach is to achieve safety, fairness and choice in non-securities financial services.

The Financial Services Regulatory Authority of Ontario will help reduce regulatory burden and make Ontario open for business and open for jobs.

Today, technology has become an inescapable part of our personal and professional lives and a dynamic force for change in society. Innovative, new products and services are coming to market daily. Dramatic changes in financial services sector are now the new normal.

Technology drives auto insurance into a new age with behaviour tracking devices, vehicle ownership giving way to on-demand mobility solutions, driverless vehicles inching closer to reality and so much more. Insurance companies offer a number of insurance and investment products and offer financial advice. New financial products and services hit the market constantly, but too many can be held back by regulations.

“The Financial Services Regulatory Authority (FSRA) of Ontario is a modern and innovative regulator with rule-making authority that promotes strong financial services and pensions sectors while protecting the public interest,” said Finance Minister Vic Fedeli. “Its mandate is to be open – open to new ideas, open to business, and open to consumer needs. FSRA has the flexibility to cut red tape, bring products to market quicker and be more responsive to the needs of businesses.”

The scope of practice of the Financial Services Commission of Ontario includes the following:

  • Auto insurance
  • Home, life and health Insurance
  • Pensions
  • Mortgage brokering
  • Credit unions / Caisses populaires
  • Loan and Trust corporations

If you have a question about the regulated sectors, want to report a case of fraud, or wish to file a complaint against a FSRA regulated company or professional, here is the link:

https://www.fsrao.ca/consumers/ask-question-file-complaint-or-report-fraud

FSRA is instrumental to the government’s priorities including reforming auto insurance to increasing access and affordability for drivers, and to establishing title protection for financial planners and financial advisors to enhance consumer protection without introducing unnecessary regulatory burden.

NOTE: The Ministry of Finance will administer FSCO’s Dispute Resolution Services until June 30, 2020. During the transitional period, all open cases will continue, however no new proceedings will commence. As of July 1, 2020, any remaining cases will be extinguished, with parties able to start a new proceeding with the Licence Appeal Tribunal.

Sources:

  • https://news.ontario.ca/mof/en/2019/06/ontario-launches-new-modern-financial-services-regulator.html
  • https://www.fsrao.ca/
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