National harmony, more risk-based regulation, regulatory reforms, and improved service. Those are things the Financial Services Commission of Ontario would like to see in the year ahead.

The paper listing FSCO’s priorities for the coming year makes no mention of the proposed merger with the Ontario Securities Commission, although FSCO does pledge to pursue a coordinated national approach to regulatory issues by working with other regulators through bodies such as the Joint Forum of Financial Market Regulators, the Canadian Association of Pension Supervisory Authorities and the Canadian Council of Insurance Regulators.

With the Joint Forum it is pursuing guidelines for capital accumulation plans, a national plan to harmonize point-of-sale disclosure requirements for segregated funds and mutual funds, to identify opportunities to harmonize the differences in investment rules for pension funds, mutual funds, segregated funds and other
pooled investment funds and to examine harmonized approaches to licensing for multi-licensed intermediaries.

Through the CCIR, it is seeking areas of market conduct regulation that can be harmonized nationally and working with stakeholders on risk-based market conduct and prudential regulation to reduce the complexity and cost of regulation in Canada. CAPSA is finalizing pension plan governance guidelines, consulting on proposed regulatory principles for a model pension law and working on of a multi-jurisdictional agreement for the regulation of pension plans with members in different jurisdictions.

FSCO also says that it aims to enhance its risk-based approach to regulation, including implementing a risk-based market conduct review of general insurance claims, fighting insurance fraud, and developing market conduct reviews in the life insurance sector.

It aims to work with the Ministry of Finance to implement further auto insurance reforms; coordinate prudential responsibilities with the Office of the Superintendent of Financial Institutions and other regulators; support changes to reinsurance rules to harmonize Ontario’s laws with federal law; seek mutual recognition or reciprocal licensing of intermediaries across Canadian borders; and, support the removal of unnecessary restrictions and barriers to becoming an agent or operating an agency.

Finally, FSCO wants to improve service delivery, by expanding the available consumer information; enabling web-based electronic filing for automobile insurance companies; developing facilities for electronic filings for dispute resolution services; and, amending the dispute resolution practice code to improve access and understanding of the system.