The Financial Services Regulatory Authority of Ontario (FSRA or “the Authority”) is pleased to present its 2022-2025 Annual Business Plan (“the Plan”).
The Plan outlines FSRA’s core strategy for the fiscal years (FY) 2022-2023, 2023-2024 and 2024-2025 and the priorities for the upcoming year (2022-2023).
FSRA is an independent regulatory agency, created to improve consumer and pension plan beneficiary protections in Ontario. The Authority launched in June 2019 to replace the Financial Services Commission of Ontario and the Deposit Insurance Corporation of Ontario.
FSRA’s role is to protect Ontario consumers. It does so by providing prudential and/or market conduct regulation and supervision of the following sectors:
- property and casualty insurance (including auto insurance rates)
- life and health insurance
- credit unions and caisses populaires2
- loan and trust companies
- mortgage brokers;
- health services providers (related to auto insurance)
- pension plans
- financial planners and advisors (proposed)
Supporting the identification and development of this year’s priorities is FSRA’s new Strategic Framework. The Framework is supported by four new strategic pillars, which articulate key areas FSRA will focus to deliver on its Mission – Public service through dynamic, principles-based3 and outcomes-focused regulation.
The priorities outlined in the 2022-2025 Annual Business Plan remain focused on regulatory efficiency (including burden reduction and delivering cost efficiencies) and effectiveness, including our commitment to modernize and innovate the Authority’s systems and processes. In addition, our priorities take into account FSRA’s operating environment, and that of our regulated entities, which continues to face economic headwinds following COVID-19. New or updated priorities reflect an enhanced focus on consumer protection and education, while balancing the need to reduce burden on business.
The financial summary in this Plan outlines forecasted costs and revenues over a three- year period. FSRA’s FY2022-23 Board-approved budget is $111.0 million. This represents an increase of $7.1 million (6.8 per cent) over the FY2021-2022 budget. This includes increases to salaries and benefits, investments in regulatory enhancements and effectiveness, and the Authority’s digital transformation (i.e., FSRAForward).
Mandate
The Financial Services Regulatory Authority of Ontario Act, 2016 (“FSRA Act”) establishes FSRA’s role in regulating non-securities financial services and pensions in Ontario. It sets out powers to administer and enforce the FSRA Act and sector statutes and outlines FSRA’s basic governance and accountability structure.
FSRA’s overarching objects, as defined in the FSRA Act, are to:
- regulate and generally supervise the regulated sectors
- contribute to public confidence in the regulated sectors
- monitor and evaluate developments and trends in the regulated sectors
- cooperate and collaborate with other regulators, where appropriate
- promote public education and knowledge about the regulated sectors
- promote transparency and disclosure of information by the regulated sectors
- deter deceptive or fraudulent conduct, practices and activities by the regulated sectors
- carry out such other objects as may be prescribed FSRA’s objects with respect to financial services sectors are to:
- promote high standards of business conduct
- protect the rights and interests of consumers
- foster strong, sustainable, competitive and innovative financial services sectors For the pension sector, FSRA’s additional objects are to:
- promote effective administration of pension plans
- protect and safeguard the pension benefits and rights of pension plan beneficiaries
For credit unions and caisses populaires, additional objects are to:
- provide insurance against the loss of part or all of deposits with credit unions and caisses populaires
- promote and otherwise contribute to the stability of the credit union and caisses populaires sector in Ontario, with due regard to the need to allow credit unions and caisses populaires to compete effectively, while taking reasonable risks
- pursue the objects set out as defined in the FSRA Act for the benefit of persons having deposits with credit unions and caisses populaires and in such manner as will minimize the exposure of the Deposit Insurance Reserve Fund to loss.
FSRA has powers and duties with respect to offering statements under the Co-operative Corporations Act. These include reviewing and issuing a receipt for offering statements that comply with the requirements under that Act.
In addition, FSRA will administer and enforce the Financial Professionals Title Protection Act, 2019 when it is proclaimed
Financial Services Regulatory Authority of Ontario – 2022-02-28.
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