The government of Ontario has announced that a new independent agency, the Financial Services Regulatory Authority of Ontario (FSRA), will replace both the Financial Services Commission of Ontario (FSCO) and the Deposit Insurance Corporation of Ontario (DICO), effective June 8, 2019.
The new agency will regulate Ontario’s financial services providers, excluding the securities sector, which is under the jurisdiction of the Ontario Securities Commission (OSC). FSRA’s areas of supervision include the province’s insurance sector, pension plans, loan and trust corporations, credit unions and caisses populaires, mortgage brokers and service providers who invoice auto insurers for statutory accident benefit claims. The agency proposes to eventually supervise the activities of financial planners and advisors.
FSRA’s legislative mandate, under the Financial Services Regulatory Authority of Ontario Act, 2016, S.o. 2016, chapter 37, Schedule 8 (the Act) is to:
- Regulate and generally supervise the regulated sectors;
- Contribute to public confidence;
- Monitor and evaluate developments and trends;
- Promote public education and knowledge;
- Promote transparency and disclosure of information; and,
- Deter deceptive or fraudulent conduct, practices and activities.
The Ontario Ministry of Finance will administer FSCO’s Dispute Resolution Services until June 30, 2020. During the transitional period, all open cases will continue; however, no new proceedings will commence. As of July 1, 2020, any remaining cases will be extinguished, with parties able to start a new proceeding under FSRA’s Licence Appeal Tribunal.
The link to the Financial Services Regulatory Authority of Ontario (FSRA) website can be found here.
For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.