Economy-related issues among Ontario regulator’s 2009-10 priorities

Dealing with the potential fallout arising out of Ontario’s contracting economy has found its way into the provincial regulator’s planning and priorities for the upcoming year.
In its June 2009 Statement of Priorities, the Financial Services Commission of Ontario (FSCO) said it has stepped up its monitoring of companies’ solvency and market conduct, based on the fact that financial service companies generally are facing an increasingly uncertain economic environment.
“While continuing to maintain our core business activities, FSCO has directed some of its resources to address the current economy,” the Statement of Priorities says. “For example, solvency monitoring of financial institutions and pension plans has been increased.
“In addition, the market practices of insurance companies are being monitored to ensure that companies maintain consumer protection standards.”
FSCO said it is currently “focusing compliance and enforcement activities on those risks that are most directly related to the current economic and financial services climate.”
It is also “emphasizing governance as a major component of risk analysis and assessments.”
It is also seeking to improve “the clarity of the regulators’ roles in similar federally and provincially regulated activities.”
This last point speaks to regulators’ recent efforts to foster a coordinated approach to regulatory issues. This includes the development of harmonized solutions through various national regulatory bodies, including the Canadian Council of Insurance Regulators (CCIR), the Canadian Insurance Services Regulatory Organizations (CISRO), the General Insurance Statistical Agency (GISA) and the Canadian Automobile Insurance Rate Regulators (CARR).