Terms of Reference

Introduction

Financial Services Regulatory Authority (FSRA) is reviewing the distribution and administration of Segregated Funds in Ontario, particularly regarding issues consumers have experienced with this type of investment product. The Segregated Funds Technical Advisory Committee (Committee) will assist FSRA to develop better processes, guidance and approaches in regulating the insurance sector.

TACs are different from Stakeholder Advisory Committees (SACs). Technical advisory groups and committees provide advice, input and feedback to FSRA management on matters related to the Rules of Practice and Procedure, Filing Requirements, Guidelines, operational policies and other matters. SACs serve as consultation bodies to the FSRA Board on FSRA's priorities and budget and other matters as the Board deems appropriate. 

Mandate

FSRA is establishing this Committee to provide technical input and expert advice from an industry perspective to FSRA on trends and issues related to Segregated Funds.

The Committee will also provide advice and recommendations to enhance consumer protection for Segregated Funds.

Committee Membership

Nomination Process

The nomination period is now closed.

 

Appointments

FSRA will appoint members based on the skills and experience of the nominees, with an emphasis on ensuring adequate diversity and organization size.

Committee Size

FSRA is seeking 10 – 14 members for the Committee (not including FSRA participants). FSRA may choose to add or remove a member at any time.

Member Qualifications

Committee membership will comprise a broad range of Segregated Funds expertise such as policy design, legal, distribution, claims and administration, and will be composed of individuals representing:

  • life and health insurance agents and/or brokers
  • life and health insurers that offer Segregated Fund products
  • life and health insurance industry associations, including those for insurance distribution

Organizations cannot have more than one representative as a member at any time. However, if a representative is unable to attend a Committee meeting, the representative can send a delegate to attend.

Member Responsibilities

FSRA expects members to:

  • review background material prepared for meetings
  • provide advice, proposals and feedback to FSRA
  • use best efforts, where possible, to develop consensus
  • provide feedback to FSRA on the functioning of the Committee

FSRA Members

FSRA’s Director, Policy-Market Conduct will chair the Committee.

Committee Outcomes

The Committee will provide, for FSRA’s consideration, advice and recommendations that may or may not result in action or policy change.

The Committee will provide advice and insight on:

  • Segregated Fund disclosure (e.g., how insurers should report to clients about the total cost of their investments and investment performance);
  • The position of the Canadian Council of Insurance Regulators (CCIR) on the regulation of Segregated Funds (see CCIR Segregated Fund Papers 2017-2018);
  • Developments in mutual fund regulation and how similar concepts might apply to Segregated Funds (e.g., Canadian Securities Administrators’ Client Focused Reforms); and
  • Insurer and consumer compensation to agents for selling Segregated Funds.

Confidentiality

The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, as amended, will generally apply to information provided to the Committee and to material prepared by or for the Committee.

Members of the Committee can obtain assistance from co-workers or industry collaborators. However, until the Committee’s mandate is complete, Committee members and those who assist them must maintain confidentiality (except in regards to information made public by FSRA). Once the Committee’s mandate is complete, a Committee member may communicate his or her views concerning the work of the Committee.

Meetings, Agendas and Deliverables

The Committee is expected to hold meetings on at least a semi-annual basis. Individual working groups within the Committee are expected to meet quarterly, or more frequently based on needs. Meetings will be held by videoconference, teleconference or in person where appropriate.

FSRA will provide meeting agendas and related materials at least one week before each regular meeting. FSRA will also prepare and distribute meeting summaries and any accompanying written submissions to Committee members no later than three weeks following a meeting. FSRA also intends to publish a high-level summary of the Committee’s work on FSRA’s website.