The Financial Services Commission of Ontario has published its statement of priorities for the coming year.

On April 27, FSCO requested comment on its initial statement of priorities. In response, it received 27 written submissions from the sectors that it regulates. The revised statement highlights FSCO’s four strategic priorities as well as key initiatives for the next 12 months.

The regulator plans to improve the efficiency and effectiveness of the regulatory framework by:

  • devloping changes to the auto insurance system;
  • establishing the role of the appointed actuary;
  • developing a flexible prudent portfolio investment approach for insurers;
  • implementing new legislative requirements for surplus distribution and flexible pension plans;
  • making proposals to modernize the regulatory framework for mortgage brokers; and
  • implementing a regulatory regime for viatical settlements.

FSCO plans to promote a coordinated national approach to regulatory issues by:

  • working to create the Ontario Financial Services Commission;
  • coordinating the development of harmonized solutions to regulatory issues through the Joint Forum of Financial Market Regulators;
  • overseeing the industry’s establishment of the National Financial Services OmbudsNetwork; and,
  • coordinating regulatory issues in the insurance and pension sectors through participation in Canadian Council of Insurance Regulators and the Canadian Association of Pension Supervisory Authorities.

FSCO aims to promote and vigorously enforce compliance by:

  • conducting Phase Two of the Life Insurance Company Market Conduct audit;
  • developing a Market Conduct self-assessment questionnaire for property and casualty insurers for use in future audits; and
  • applying a risk-based approach to the Pension Plan Examination Program.

As its final priority for the year, FSCO hopes to deliver a high standard of customer service through enhanced e-communication.

As for its financial outlook, FSCO says that it is forecasting two workload-based financial pressures in 2002-2003. One concern arises from the biennial cycle for life agent licensing. This year agent renewals will be double last year’s levels. A second concern is the general increase in the level of applications for dispute resolution services. FSCO charges a fee for these services, so an increase in applications should be covered by an increase in revenues.