FSRA releases insights into Pension Risk Management Practices for Alternative Assets

The Financial Services Regulatory Authority of Ontario (FSRA) is committed to promoting the good administration of pension plans and protecting and safeguarding the pension benefits and rights of pension plan beneficiaries. 

FSRA reviewed the risk management practices for alternative assets of Ontario’s six largest public sector pension plans. These plans were reviewed in response to the International Monetary Fund’s stability assessment of Canada’s financial system as well as FSRA’s business plan

These plans play a key role in the financial safety of Ontarians with over 1.5 million members and over $475 billion of assets under management. Alternative assets are a significant and strategically important part of the plans’ investment portfolios. The plans have adopted practices to manage the risks of investing in this asset class and to meet their standard of care. 

The leading practices summarized in the report can help all plans to self-assess in meeting their standard of care for investing in alternative assets. The six large public sector pension plans in Ontario that we reviewed are unique not only by virtue of their size but also their governance, risk management and investment expertise. Plan administrators of smaller plans are expected to address the risks of investing in this asset class proportionately to the size and within the context of their plan. The report includes questions for plan administrators to consider if considering investing in this asset class.

Learn more:

The Financial Services Regulatory Authority of Ontario (FSRA) is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members. Learn more at

Alternative Assts and Risk Management: Insights into Practices Observed from FSRA’s Review of Six Large Public Sector Pension Plans in Ontario.