August 14, 2023 by Jason Contant
Ontario’s financial services regulator is consulting on proposed guidance for how and when it issues public warning notices.
The guidance applies to all sectors (except pensions) regulated by the Financial Services Regulatory Authority of Ontario (FSRA), which includes property and casualty insurance. However, the guidance is not applicable to insurance professionals such as brokers that are not regulated by FSRA, the regulator told Canadian Underwriter.
Public warning notices alert consumers to potential misconduct through unlicensed activity and rule-breakers in the financial services markets, FSRA said. The regulator may issue a notice if it discovers one or more of the following factors:
“Public warning notices are intended to curb consumer harm, act as a deterrent to those who carry out unlicensed activities and instill greater confidence in the financial services sectors,” FSRA said in a press release.
FSRA’s proposed guidance document:
Depending on the scope and nature of harm to the consumer, FSRA said it may proceed with a more robust media strategy to increase public awareness, share information with other regulators as applicable, and consider pursuing formal enforcement action. The regulator will also keep all public warning notices available on its website in perpetuity.
FSRA told CU it has communicated about the guidance through a province-wide news release, an announcement on its website, through social media channels and by sending an email newsletter to applicable sectors.
“We expect all FSRA-regulated individuals and entities to follow the rules and act in consumers’ best interests,” the regulator said. “The guidance will help deter harm to consumers, uphold market integrity and promote public confidence in Ontario’s financial services.”
To review the proposed guidance and submit feedback, visit FSRA’s consultation page. The consultation period will close Aug. 25.
Feature image by iStock.com/Mongkol Akarasirithada