FSRA continues to make progress in preparation to assume regulatory functions currently delivered by the Financial Services Commission of Ontario (FSCO) and the Deposit Insurance Corporation of Ontario (DICO). We are working closely with the Ministry of Finance, FSCO and DICO to ensure a smooth transition of regulatory authorities, as well as to start the transformation required to achieve burden reduction and regulatory effectiveness.
With an ambitious transformation mandate, FSRA will not simply be a continuation of existing Ontario regulators. FSRA’s aim is to be an efficient and effective regulator that serves the public interest. We are committed to doing the right things and doing things right.
We remain on track for Spring 2019, with a phased transition starting in April to facilitate a June launch.
Draft 2019-20 FSRA Priorities and Budget
FSRA is pleased to propose its inaugural budget and priorities to enable its transformation to a forward-looking, flexible, self-funded, principles-based regulator capable of responding to the dynamic pace of change in the marketplace, industry and consumer expectations.
The proposed budget and priorities for F19-20 demonstrate FSRA’s intention to regulate differently by using greater expertise, rule-making and other regulatory tools and improved processes to reduce burden and increase regulatory effectiveness while maintaining prudent financial stewardship.
Proposed Fee Rule
On September 28, 2018 the Ontario Legislature proclaimed FSRA’s rule-making authority under the Financial Services Regulatory Authority of Ontario Act, 2016 (FSRA Act). This is a significant milestone that enables FSRA to make rules, including those governing fees and other charges required for FSRA to operate as an independent, self-funded agency that will operate on a cost recovery basis.
As part of the transition of FSCO’s and DICO’s regulatory mandate to FSRA, FSRA has developed an initial fee rule to obtain funding from the financial services sectors it regulates. The proposed fee rule is intended to enable FSRA to maintain continuity of FSCO and DICO operations and build enhanced capacity, resources and expertise to efficiently and effectively anticipate and respond to the dynamic pace of change in marketplace, industry and consumer expectations.
The proposed fee rules are based on foundational values and principles established by the FSRA Board: simple, consistent, fair, transparent, future-focused, efficient and effective.
Prior to formal statutory public consultations on the proposed fee rule FSRA established seven ad hoc, special purpose Fee Rule Industry Advisory Groups to provide regulated sector industry insight and views to the FSRA management and Board of Directors.
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.
The April 2018 Progress Report provided an update on FSRA's current status and activities, a high-level overview of FSRA's proposed strategic framework and key areas of focus.