The Financial Services Regulatory Authority of Ontario (FSRA) has released its 2021-2024 Annual Business Plan, outlining its priorities, strategic direction, financial overview and supporting activities – and COVID-19 issues have taken front and centre.
The report notes that while recovery efforts of the pandemic continue, there is no set time frame for recovery and FSRA is working with all its stakeholders to manage the unknown.
“Recent experience demonstrates FSRA’s ability to adapt to this volatile environment and to continue to deliver on established plans,” says the report. “Still, future COVID-19-related challenges may impede the progress of FSRA priorities across all regulated sectors.”
Title protection framework will establish minimum standards
FSRA’s title protection framework for financial planners and financial advisors is expected to promote confidence and professionalism in the sector and reduce confusion for investors and consumers when it is proclaimed. This will happen by establishing minimum standards and leveraging existing licence and designation regimes.
FSRA will also continue to promote a national dialogue on a harmonized approach to regulatory issues in the areas it regulates.
COVID-19 hit the property and casualty insurance industry, with the impact most acute in certain sectors and product lines, such as commercial liability. With fewer drivers on roads due to COVID-19 emergency measures, FSRA has issued guidance aimed at ensuring consumers are treated fairly. Insurers reported that consumers have been eligible to receive almost $1 billion in relief in 2020 through a variety of channels, including rebates and reductions in premiums.
FSRA continues to monitor whether the promised relief is delivered and evaluate whether insurers’ rates remain just and reasonable.
FSRA monitors usage-based auto insurance models
COVID-19 has accelerated industry progress in digitizing the distribution of insurance products. There is also increased interest in usage-based auto insurance models due to decreased mobility.
As well, FSRA has closely monitored the economic impacts on credit unions from a prudential perspective because of the pandemic. This monitoring included the adverse cash flow experience or changes in liquidity associated with the permitted deferral of certain loan payments for up to six months. It also included the adverse impacts on financial performance resulting from a reduction in interest rates, which is anticipated to persist over the coming years. The health of these organizations affects the products and service guarantees of the consumers who are also affected as members and depositors.
