Annual Report 2014-2015

Table of contents

 

About the Financial Services Commission of Ontario

 

The Financial Services Commission of Ontario (FSCO) is a regulatory agency accountable to the Minister of Finance, established by the Financial Services Commission of Ontario Act, 1997 (FSCO Act). FSCO oversees insurance, pension plans, mortgage brokering, credit unions and caisses populaires, co-operative corporations, loan and trust companies in Ontario, and health service providers that invoice auto insurers for statutory accident benefits claims.

 

As an organization, FSCO is committed to being a progressive and fair regulator, working with stakeholders to support a strong financial services industry, and protecting the interests of financial services consumers and pension plan members.

Who We Regulate

 

As of March 31, 2015, FSCO regulated or registered:

 

  • 331 insurance companies
  • 7,189 pension plans
  • 114 credit unions and caisses populaires
  • 51 loan and trust corporations
  • 1,185 mortgage brokerages
  • 2,611 mortgage brokers
  • 9,988 mortgage agents
  • 133 mortgage administrators
  • 1,785 co-operative corporations
  • 49,282 insurance agents
  • 5,322 corporate insurance agencies
  • 1,617 insurance adjusters
  • 3,883 accident benefit service providers

Relevant Statutes

 

Governance and Accountability

 

FSCO is comprised of a commission, the Superintendent of Financial Services and staff, and the Financial Services Tribunal.

Commission Membership and Purposes

Appointments to the commission are made in accordance with the guidelines established by Ontario’s Public Appointments Secretariat [New Window].

 

Members of the Commission
NamePositionTenure
Florence A. HoldenChair (Acting)August 8, 2014September 5, 2017
Denis BoivinVice Chair (Acting)December 1, 2014July 22, 2017
Tom GolfettoDirector of ArbitrationsMay 4, 2009May 3, 2017
Brian MillsCEO and Superintendent of Financial Services (Interim)October 18, 2014N/A

 

The commission meets quarterly and reviews key planning, strategic and accountability documents, including FSCO’s:

 

  • Agency Business Plan;
  • Program Review, Renewal and Transformation Plan;
  • Risk Mitigation Plan;
  • Statement of Priorities; and
  • Annual Report.

Commission members are also invited to attend FSCO’s Audit and Risk Committee meetings.

 

FSCO has a well-established series of on-going internal committees on various policy and operational issues, which play a key role in FSCO’s day-to-day activities. As well, internal steering committees guide key projects that involve different units or affect a number of areas within FSCO.

Superintendent and Staff

The Superintendent of Financial Services (Superintendent) administers and enforces the FSCO Act and all other acts that confer powers on or assign duties to the Superintendent. All FSCO staff report directly or indirectly to the Superintendent. FSCO staff, who are public servants under the Public Service of Ontario Act, 2006, perform FSCO’s day-to-day work.

 

Under the FSCO Act, the powers and duties of the Superint­en­dent include:

 

  • generally supervising the regulated sectors;
  • administering and enforcing the FSCO Act and every other
    act that confers powers on or assigns duties to the Superintendent; and
  • being responsible for FSCO’s financial and administrative affairs.

Financial Services Tribunal

The Financial Services Tribunal [New Window] (FST) is an expert, independent adjudicative body. The chair and vice-chairs of the FST are also the chairs and vice-chairs of the commission. More information on the FST appears later in this report.

 

Governance and Management Processes

The foundation for FSCO’s corporate governance is provided by the Management Board of Cabinet’s Agencies and Appointments Directive (AAD) and the Memorandum of Understanding [PDF Document] Size: ## kb (MOU) between the Minister of Finance, the Chair of the Commission and the Chief Executive Officer and Superindendent.

 

The AAD sets out the process for establishing a new agency classified under the directive, the accountability framework governing agencies and ministries in the operation of agencies, and uses a risk-based approach in managing agency accountability.

 

The MOU outlines the accountability framework between the minister and FSCO, establishes tools for governance and accountability and explains roles, relationships and mutual expectations.

 

Performance Measurement Framework

FSCO’s Performance Measurement Framework ensures greater transparency, accountability and value-for-money. It also ensures that FSCO measures performance, focuses on meaningful results, and reports on outcomes.

 

Financial Reporting

As an Ontario government agency, FSCO receives an annual spending authority through the government planning process, based on needs and government priorities. FSCO files quarterly reports on its spending. The Office of the Auditor General of Ontario [New Window] audits FSCO’s annual financial statements.

 

Fiscal and Human Resources

In 2014–15, FSCO’s expenditures totalled $96.8 million up $8.8 million, or 10 percent, from the previous year. The spending increase was due primarily to the increase in billable services by ADR Chambers under the Dispute Resolution Services program, accrued severance costs, and the new sector costs for health service providers.

 

More information on FSCO’s 2014–15 expenditures is contained within the financial statements and notes which appear later in this report.

 

On March 31, 2015, FSCO had 442 full time staff. This total does not include legal services staff who are employees of the Ministry of the Attorney General.

 

Recovering FSCO’s Costs

Most of FSCO’s costs are recovered from the regulated sectors through a combination of assessments and fees. Under the FSCO Act, the Lieutenant Governor in Council may assess all businesses, individuals and pension plans that form part of a regulated sector with respect to expenditures incurred by the Ministry of Finance, the commission and the FST. The Minister of Finance is authorized to establish fees with respect to the regulatory services provided by FSCO.

 

The government supports co-operative corporations by providing an allocation of $500,000 to help cover the costs of administering the sector.

 

Executive Committee

(Effective March 31, 2015)

 

View a full-size version of the Executive Committee chart image [New Window].

 

Description of the Executive Committee chart image [New Window].

 

Return to top