FSRA Notice and Request for Comment on Proposed FSRA Rule

October 5, 2018

The Financial Services Regulatory Authority (FSRA) has published a Notice and Request for Comment on a proposed rule regarding assessments and fees

FSRA is a new, independent regulatory agency established by the Financial Services Regulatory Authority of Ontario Act, 2016 (FSRA Act) to more effectively regulate non-securities financial services in Ontario.

When operational, FSRA will be a forward-looking, flexible, self-funded regulator capable of responding to the dynamic pace of change in marketplace, industry and public expectations. It will

  • support business investment, competition and innovation;
  • respond to changes in industry and consumer expectations;
  • better protect Ontarians who: buy or receive benefits from insurance (property and casualty including auto; life; health; annuities and life-related investment products); are members of credit unions; do business with credit unions or loan and trust companies; use mortgage brokers; or rely on pension plans for income security;
  • improve market effectiveness and enhance market integrity; and
  • foster effective and consistent regulation across Canada through leadership and advocacy.

FSRA is implementing a transition plan to assume regulatory functions currently under the auspices of the Financial Services Commission of Ontario (FSCO) and Deposit Insurance Corporation of Ontario (DICO).

Under the Financial Services Regulatory Authority of Ontario Act (2016), FSRA is provided with rule-making authorities, including the authority to make rules governing fees and other charges. Based on extensive research, collaboration and engagement with stakeholders, the proposed fee rule is intended to enable FSRA to maintain continuity of FSCO and DICO operations during the transition, and to build enhanced capacity, resources and expertise to deliver progressive, flexible and effective regulation.

The proposed fee rule is based on foundational values and principles established by the FSRA Board: simple, consistent, fair, transparent, future-focused, efficient and effective.

FSRA is also publishing a Notice and Request for Comment on FSRA Rule 2019-001B Assessment and Fees - Interim, to provide an interim fee rule alternative, aligned with legacy agency practices, should a transitional measure be required.

Dialogue and consultation will be at the core of FSRA's approach to its ambitious transformation and modernization plan. FSRA welcomes comments on this initial rule, and will continue to seek stakeholder input on its future directions.