The Financial Services Commission of Ontario rplans to implement point-of-sale disclosure requirements for segregated funds in the coming year.

In its latest statement of priorities for the year ahead, FSCO says that it will, “Implement the Joint Forum [of Financial Market Regulators] framework on harmonized point of sale disclosure for [segregated funds] and mutual funds to ensure consumers are provided with easily understandable information on the risks and benefits of these investment products at the time of purchase.”

The Canadian Securities Administrators recently released its proposed rule to implement point-of-sale requirements on the mutual fund side.

Additionally, as part of its work with the Joint Forum, FSCO says that regulators are examining, “the responsibilities of investment product manufacturers, intermediaries and consumers in ensuring that consumers are offered suitable products and are able to make informed decisions.”

Among other priorities, it also pledges to, “Upgrade the licensing and compliance information systems to better identify companies and intermediaries that pose a risk of loss to the consumers and businesses using [their] financial services.”

The statement notes that in the past year FSCO has directed some of its resources to address conditions created by the recession. “For example, solvency monitoring of regulated financial institutions and pension plans has been increased. In addition, the market practices of insurance companies are being monitored to ensure that companies maintain consumer protection standards,” it notes.

FSCO adds that while the statement outlines its priorities for the next year, “current economic conditions may cause us to re-visit our planned activities.”

IE