Overview of Sectors

FSRA is a dynamic, self-funded regulatory agency. It was established to improve consumer protections in Ontario. FSRA regulates P&C insurance, life and health insurance, credit unions and caisses populaires, loan and trust companies; mortgage brokers, health service providers (related to auto insurance), and the pension sector.

What does FSRA do?

  • Promotes high standards of business conduct through regulation and supervision of its regulated sectors.
  • Oversees business behaviour within the sectors it regulates (market conduct), including sector licensing and conduct regulation. This includes ensuring that the conduct of financial service providers protects the interests of consumers, as well as reviewing whether personal auto insurance rates are just and reasonable for consumers.
  • Performs prudential supervision, which includes focusing on systemic risks and sustainability to protect the public interest.
    • For credit unions, that includes reviewing liquidity and capital requirements, and ensuring appropriate recovery and resolution mechanisms are in place.
    • For pensions that means promoting good administration of pension plans and protecting and safeguarding the rights and benefits of beneficiaries.
    • For Ontario-incorporated insurance companies, FSRA monitors solvency and risk in addition to ensuring that appropriate controls are in place.

Statement of Priorities

FSRA continues to focus on regulatory efficiency (including burden reduction) and regulatory effectiveness through cross-sector and sector-specific priorities. FSRA’s proposed priorities will continue to deliver a positive impact by improving:

  • stakeholders’ regulatory experience, and
  • safety, fairness and choice for consumers of financial services, and members of pensions in Ontario.

The requisite implementation plan is embedded within the overview and description of each priority. These priorities signify a new or transformative approach, process and/or initiative that have not been part of normal operating procedures in the past. Once they are part of regular business practices they will no longer be a stated priority, but ingrained in how FSRA operates.

Cross-Sectoral Priorities

Regulatory Efficiency[3] and Effectiveness

1. Protect the Public Interest

2. Enable Innovation

3. Modernize Systems and Processes

4. Transition to Principles- Based Regulation

Sector-Specific: Targeted High-Impact Priorities

5. Property & Casualty / Auto Insurance

6. Credit Unions

7. Life & Health Insurance

5.1. Empower and protect P&C insurance consumers

5.2. Support government’s priorities and evaluate trends in the auto insurance system

5.3. Implement auto insurance data and analytics strategy

6.1. Support modernization of credit union framework

6.2. Enhance Deposit Insurance Reserve Fund Adequacy Framework and Sector Liquidity Framework

6.3. Continue to design and develop the Integrated Risk-Based Supervisory Framework

7.1. Enhance market conduct oversight to protect consumers

8. Mortgage Brokering

9. Pensions

10. Financial Planners & Advisors

8.1 Implement recommendations from the review of the MBLAA, to the extent within FSRA’s purview.

9.1 Support plan flexibility, evolution and principles-based applications within the existing regulatory and legislative regime

9.2 Develop and consult on prudential supervision framework

9.3 Refocus pension regulation to improve regulatory efficiency and effectiveness

10.1 Implement the title protection framework for FP/FA

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[2] For the purposes of this document, the term “credit union” will be used to refer to both credit unions and caisses populaires.
[3] Regulatory efficiency includes FSRA’s continued commitment to burden reduction in the regulated sectors. FSRA’s specific burden-reduction activities are detailed throughout the Annual Business Plan.