FSRA releases its final approach to Principles-based Regulation

FSRA’s mission is “public service through dynamic principles-based and outcomes-focused regulation”.

We believe this approach will lead to a financial services environment that is innovative, flexible, collaborative and responsive, promoting high standards of business conduct and better protecting the rights and interests of consumers.

To help the sectors better understand and engage with FSRA about principles-based regulation, we are releasing our final principles-based regulation guidance.

As a regulator, we set outcomes for regulated entities and individuals to achieve, which are based on the principles in our statutory objects.

FSRA has also developed a set of framework principles which outline how FSRA will regulate and supervise entities and individuals. Principles-based supervision aims to be constructive, transparent and collaborative.

At FSRA, a principles-based approach helps ensure:

• regulated entities are empowered to decide processes, procedures and cost-saving measures
• Ontario’s consumers have access to innovative products and services and can make informed choices for their own financial service needs

The benefits of principles-based regulation include:

• Promoting Innovation: FSRA will interpret and apply principles creatively, which means businesses can innovate new ways to achieve regulatory goals, leading to better outcomes for consumers.
• Flexibility: Instead of rigid rules, principles-based regulation sets broad principles or goals, allowing businesses to find their own ways to meet them, encouraging innovation and adaptation.
• Protection: Consumers are more likely to be protected from harm, as the regulator can adapt to new risks or situations more quickly.

In certain areas, FSRA will need to continue to rely on detailed Rules and prescriptive requirements to ensure adequate consumer protection.

Learn more:

• Principles-based Regulation
• Principles-based Regulation Guidance

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.

Learn more at www.fsrao.ca.