Ontario’s provincial government recently combined two agencies to form a single regulatory body for pensions and financial services – which includes the insurance sector.
The Financial Services Commission of Ontario (FSCO) and the Deposit Insurance Corporation of Ontario (DICO) were combined over the weekend to form the Financial Services Regulatory Authority of Ontario (FSRA), a single integrated, independent, and self-funded regulator. The FSRA officially started regulating financial services and pensions in Ontario on June 08.
Excluding securities, the FSRA will oversee Ontario’s financial services providers – including the insurance industry – and will tackle key priorities in its first year of operation that will reduce regulatory burden for regulated sectors.
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In a statement, Finance Minister Vic Fedeli said that the FSRA is instrumental to the government’s priorities, from reforming auto insurance to increasing access and affordability for drivers.
“The Financial Services Regulatory Authority of Ontario is a modern and innovative regulator with rule-making authority that promotes strong financial services and pensions sectors while protecting the public interest,” said Fedeli. “Its mandate is to be open — open to new ideas, open to business, and open to consumer needs. FSRA has the flexibility to cut red tape, bring products to market quicker and be more responsive to the needs of businesses.”
“Our government recognizes that making Ontario open for business means making sure financial services are efficient, responsive to consumers and businesses — FSRA will play a vital role in helping businesses grow while protecting consumers.”
Pending FSCO disputes will be administered by the Ministry of Finance until June 30. During the transitional period, all open cases will continue – however, no new proceedings will commence.