FSRA to promote good pension plan administration
Effective June 8, 2019, the Financial Services Regulatory Authority of Ontario (FSRA) launched with a mandate to transform the regulatory environment in pensions and other non-securities financial services sectors, with a focus on principles-based regulation.
FSRA is actively reviewing all FSCO regulatory guidance, including the Administrative Penalties Guideline. Until FSRA issues new regulatory guidance, all existing guidance remains in force.
Compliance with Filing Requirements
In Ontario the vast majority of plans are in compliance with filing requirements under the Pensions Benefits Act (PBA). Promoting good administration of pension plans and protecting plan members’ rights are key priorities for FSRA. FSRA uses the information provided in regulatory filings to deliver on these priorities and fulfill its regulatory mandate.
Pension plans are required to comply with the filing requirements under the PBA. To avoid incurring summary administrative monetary penalties (AMPs) for late filings, we encourage you to ensure the prescribed timelines are met. FSRA is adopting a measured, and principles-based approach to phase in this change in regulatory strategy.
Filings that are due prior to September 30, 2019
FSRA will proactively assist plan sponsors to bring their plans into compliance by October 31, 2019. In the coming weeks, FSRA will contact in writing, those plans with identified outstanding filings. If the specified past-due filings are filed by October 31, 2019, summary AMPs will not be imposed; this will be a one-time opportunity.
Going forward – filings due on and after September 30, 2019
Filings due on or after September 30, 2019 must comply with the filing requirements and prescribed timelines under the PBA to ensure that summary AMPs are not incurred.
More information on FSRA’s approach regarding the imposition of summary AMPs is available in the Administrative Penalties Guideline.
To discuss our approach to outstanding filings and answer any questions that you may have, please contact Pension Division staff at 416-250-7250. Alternatively, you may email us at: AMPsubmission@fsrao.ca.