Promoting a coordinated national approach to regulatory issues is among the priorities for the coming year set out today by the Financial Services Commission of Ontario.

FSCO identifies three other main priorities: apply risk-based approaches when designing operational policies and procedures; amend operational policies and procedures and propose amendments to legislation and regulations to keep up with changes in the marketplace; and, make effective use of technology in delivering services.

FSCO says it believes that each of the four priorities for 2003-2004, and the initiatives associated with them, will have a positive impact on consumers. “By pursuing these priorities and initiatives, we are confident that we will meet the needs of well informed financial services consumers,” it notes.

Under its priority to seek a coordinated national approach to regulatory issues, it plans to: work toward the further harmonization of the securities and insurance regulatory frameworks for mutual funds and individual variable insurance contracts (segregated funds), particularly as they relate to point of sale disclosure requirements; work toward the implementation of harmonized national guidelines for capital accumulation plans across the pension, insurance and securities sectors; conduct consultations on the principles and practices for the sale of products and services in the financial sector document, which discusses the Joint Forum’s project to develop a common set of principles and practices for the sale of products and services by all financial intermediaries operating in more than one sector; among other things.

It also says that it will continue work on regulatory principles for a model pension law; work toward the continued development of a revised reciprocal agreement for multi-jurisdictional pension plans; work toward the implementation of harmonized guidelines for governance of pension plans; conduct consultations on recommended changes to the rules governing the investment of pension funds; increase inter-provincial harmonization in the regulation of agents and brokers; work toward the harmonization of “prudent portfolio” initiatives with the Office of the Superintendent of Financial Institutions and other provinces.

It plans to develop a risk-based approach to pension fund investment monitoring; develop dynamic capital adequacy testing requirements and oversee the implementation of appointed actuary requirements by Ontario incorporated companies; and, continue the risk-based approach to licensing, market conduct, monitoring and enforcement in the regulation of insurance companies, credit unions/ caisses populaires, and intermediaries.

It also indicates that it will continue to work with the ministry and stakeholders to develop a regulatory regime for viatical settlements; identifying and recommending changes to the Mortgage Brokers Act; and, to consider removal of occupational restrictions for insurance agents and ownership restrictions for insurance agents. It also expects to work with the ministry of Finance to consider the incorporation of life licence qualification program requirements in regulation.

It makes no mention of the planned merger with the Ontario Securities Commission.