The Financial Services Regulatory Authority of Ontario (FSRA) is seeking public input on proposed guidance aimed at enhancing consumer protection by appropriately sanctioning those who are not compliant with sector statutes, regulations, and FSRA rules and requirements.
FSRA's enforcement mandate includes the power to impose administrative monetary penalties (AMPs) to address non-compliance. Recent legislative changes have also expanded FSRA's authority to impose AMPs in some sectors.
The proposed guidance outlines when AMPs are imposed and how the amounts are determined, while also interpreting the statutory requirements that FSRA must follow when imposing penalties.
It specifically deals with AMPs imposed under the following statutes:
“Consumer protection is our top priority, and we are looking at ways to strengthen enforcement and deter misconduct and non-compliance,” said Elissa Sinha, FSRA director, litigation and enforcement. “That's why we are seeking public input on the monetary penalties FSRA is authorized to impose. We want the industry and consumers to have a say in how we deal with those who do not follow the rules or break the law.”
The consultation period is now open, and individuals can visit FSRA's website to review the proposed guidance and submit their feedback until May 31, 2023.
A press release from FSRA said this public consultation is intended to help ensure transparency for consumers and industry, calling it an approach that “supports fairness, consistency, and improved decision making.”
Earlier this month, FSRA released new guidance for insurance companies incorporated in Ontario.
This guidance, called the Risk Based Supervisory Framework for Ontario Incorporated Insurance Companies and Reciprocals (RBSF-I), was designed to provide clarity to the processes and practices that the regulator will follow when establishing supervisory plans and taking supervisory action, and is aligned with international standards and best practices.
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