The Financial Services Commission of Ontario has published its proposed statement of priorities for the coming year, singling out compliance among mortgage brokers, auto insurance reform, and pension regulation as key priorities for the coming year.

FSCO published a draft statement of priorities observing that it, “has identified automobile insurance reform, mortgage broker compliance and pension regulatory services as key focus areas.”

To improve compliance with mortgage broker regulations, it pledges to:

• review continuing education needs for life insurance agents, mortgage agents and brokers;

• enhance risk-based monitoring, examination and enforcement; update technology to integrate licensing and risk assessment systems; and

• modernize its market conduct policies and procedures “to provide a more consolidated and consistent approach to handling market conduct complaints.”

On the pension side, FSCO plans to:

• develop a comprehensive approach to risk-based regulation of pension plans;

• work with the Canadian Association of Pension Supervisory Authorities on a discussion paper and guidelines related to the “prudent person rule”; and

• host information sessions for pension plan administrators to raise awareness of legislative requirements and promote compliance.

FSCO is also pledging to continue work with other regulators through national coordinating bodies, such as CAPSA, the Joint Forum of Financial Market Regulators, the Canadian Council of Insurance Regulators, the Canadian Insurance Services Regulatory Organizations, and the new Canadian Mortgage Brokers Regulation Group, among others.

With the Joint Forum, it says that it plans to examine the responsibilities of investment product manufacturers, intermediaries and consumers to ensure consumers are offered suitable products and are able to make informed decisions. FSCO also plans to develop mechanisms to allow for more effective sharing of information on regulatory enforcement issues and actions across sectors and jurisdictions.

With the CCIR and the CISRO, it pledges to review the regulation of managing general agencies, wholesale agencies and insurance adjusters to identify and address risks to consumers, regulatory gaps, and legislative and regulatory barriers; and to review and examine the issues and options around the use of credit scoring models in underwriting and other ways insurers use data from credit rating agencies.

The draft is out for comment until May 18.

IE