Communication Plan, Agency Mandate Letter & IT | Financial Services Regulatory Authority of Ontario

Communication Plan

FSRA is enhancing its internal and external communications function to support its regulatory and cultural transformation.

Readability is a key indicator of effective communications. Information that is clear, concise, and avoids jargon can promote a stronger understanding of FSRA’s activities and goals.

FSRA is committed to providing public- facing materials that are written in plain language. Staff are trained on software that can simplify technical language in material aimed for general readership, shorten sentences, and has a consistent tone.

This focus will extend to forms. FSRA is currently reviewing them to improve navigation, incorporate best practices to increase completion rate, and reduce burden.

Stakeholder engagement is a cornerstone of FSRA’s approach to regulation. Stakeholder Advisory Committees (SACs), TACs, special purpose Standing TACs, and the CAP have all been established since FSRA’s creation (Appendix C).

The SACs serve as the primary consultation bodies to the Board on FSRA's priorities and budget and other matters, such as rule-making, as the Board deems appropriate. SACs are an important part of FSRA's stakeholder engagement process and complement the many sector specific ad hoc, special purpose, and standing working groups and advisory committees.

This year, FSRA formed additional committees including, in addition to the TACs mentioned above, a Mortgage Brokering Technical Advisory Committee and two topic-specific TACs in the life and health insurance sector. They will advise on the supervision of product distribution through MGAs and on increasing regulatory effectiveness with respect to segregated funds.

The CAP serves as an advisory body to FSRA and provides ongoing advice from a consumer perspective on proposed FSRA policy and regulatory changes. It plays an important role in fulfilling FSRA’s mandate to protect the public interest in financial services in Ontario by ensuring that consumer and other public input and perspectives inform its regulatory direction and decisions.

The Consumer Office undertakes consumer research and experience mapping and sets and executes the strategy for consumer engagement. The insights gathered are essential to the implementation of key priorities.

Key priorities include empowering and protecting consumers, such as auto insurance customers, through transparent disclosure of rate information, consumer disclosure improvements and consumer awareness initiatives. FSRA has also completed a Residents’ Reference Panel to make recommendations to FSRA on automobile insurance regulation in Ontario.

FSRA will develop a strategic communications and marketing plan that supports consumer understanding and education. Work includes exploring digital strategies to do so on key topics that affect the non-securities financial services and pension sectors in Ontario.

FSRA is committed to safeguarding public confidence and trust in our financial institutions and regulated sectors.

FSRA is committed to providing consistent and timely information to its employees and embraces open dialogue with employees through various channels.

As a result of COVID-19 and the transition to remote work, FSRA has employed new and improved technology to support business continuity and continued employee engagement.

FSRA has adapted its internal channels to replicate in-person activities, such as virtual staff town halls and virtual onboarding for new employees.

The latest technology will be used to support and communicate with remote employees throughout FY2020-2021 and expand the suite of virtual activities throughout the organization. This includes a new online learning and development platform and organizational announcements using multimedia.

FSRA will continue to enhance the website launched in June 2019 to promote the authority as a credible, transparent and effective regulator, and enhance consumer confidence in the sectors regulated. The aim is to ensure that consumers and industry users can easily find, understand and apply the information that they seek.

To achieve this, FSRA will have a single website that incorporates best practices in user experience design, with an optimized search capability, and integrated content from the FSCO and DICO sites. The information will be written in plain language and incorporate Accessibility for Ontarians with Disabilities Act principles.

This will provide inclusive and accessible information on FSRA services to all stakeholders. Content is reviewed based on pre-defined criteria to ensure that only current, relevant and FSRA-madndated information is published.

FSRA conducts content research and testing to identify and meet the navigation needs of consumers and industry stakeholders.

Once FSRA integrates all necessary content from FSCO and DICO, these sites will be decommissioned and archived within FSRA for reference.

Response to Expectations in Agency Mandate Letter

FSRA plays a vital function in regulating Ontario’s non-securities financial services and pension sectors. Management and employees will continue to focus on the Board approved priorities, objectives and strategic direction. This will be consistent with FSRA’s mandate and directions from the Minister, made in accordance with the legislative framework. Pursuant to the requirements of the Agencies and Appointments Directive, this represents the response to the Minister’s letter setting out expectations for FY 2021-22.

FSRA is committed to working closely with MOF to achieve the desired outcomes within the regulated sectors and to nurture a high-performing organization that will deliver on ambitious plans. Pursuant to the FSRA Act, FSRA’s mandate includes:

fostering strong, sustainable, competitive and innovative financial services sectors;
promoting stability and high standards of business conduct; and
protecting the rights and interests of consumers, credit unions depositors and pension plan beneficiaries.

FSRA is dedicated to act in the best interest of the people of Ontario by finding more effective and efficient ways of delivering regulatory services to reduce regulatory burden and providing value for money. In every action, decision and expenditure, FSRA considers the interests of the taxpayer and the people of Ontario. This includes:

competitiveness, sustainability and expenditure management;
transparency and accountability;
risk management;
workforce management;
data collection; and
digital delivery and customer service.

We have, and will continue, to contribute to cross-sectoral burden reduction goals, improving regulatory efficiency and effectiveness across sectors, and supporting government reform initiatives for Ontario’s financial services and pension sectors. FSRA will continue to focus on delivering the above priorities to foster strong, sustainable, competitive and innovative non-securities financial services and pension sectors.

Information Technology

FSRA is continuing to strengthen its core IT capabilities as it reviews and transforms its regulatory and supervisory processes to be a more effective and efficient regulator. This builds on the foundation FSRA established in 2019, including: a secure and stable data centre; efficient and effective back-office systems; a combined IT workforce made up of previous regulatory agencies’ staff; a cybersecurity roadmap; and a core regulatory digital transformation blueprint.

The goal is to establish cost-effective, modern, secure and flexible technology platforms to support these renewed processes. This will allow FSRA to be more responsive and more adaptable to changing regulatory needs.

Modernizing FSRA’s IT systems is important for several key reasons:

Reducing reliance on outdated legacy systems that are no longer supported and cannot be updated, thus reducing technology and operational risks and improving cybersecurity.
Streamlining and automating processes, which will reduce manual processing, lower operating costs and improve turnaround times for regulatory processes such as licence issuance. These modern systems, with workflow capabilities and business rules engines, are expected to enable reduced processing times from weeks to real-time.
Providing better access to information and transparency on status and outcomes of requests. This will happen for both regulated entities and consumers via digital channels and through the service centre.
Reducing the time and effort required to file, retrieve and analyze information.
Reducing error rates and rework by employing effective data management practices and automating validation processes.

Modernizing core regulatory processes and systems work has begun with the development of a digital transformation blueprint. It aligns processes, data, technology and stakeholder interactions with FSRA’s business vision and priorities.

As FSRA progresses on this roadmap, the initial focus is on procuring and onboarding key applications and technology platforms, aligning the IT operation model, and building foundational technology and data components. Achieving fully digital, integrated and flexible technology and processes will be a multi-year and multi- million-dollar journey. In the first quarter of FY2021-22, FSRA will consult with stakeholders and sectors on key decisions and priorities as it looks to increase regulatory efficiency and effectiveness and reduce regulatory burden.

FSRA is implementing a cybersecurity program consistent with the approved cybersecurity roadmap. This program leverages a recent third-party cybersecurity assessment and industry best practices in prioritizing initiatives that minimize FSRA’s cybersecurity risks. FSRA’s approach is aligned with National Institute of Standards and Technology Cybersecurity Framework, a leading cybersecurity risk management framework.

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