To protect consumers and plan members and enhance public confidence in the regulated sectors, FSCO monitors, investigates and when there is non-compliance with legislation and regulations, takes appropriate enforcement action against the sectors it regulates and persons who are illegally engaged in those sectors.
FSCO undertakes a number of monitoring activities as part of its regulatory functions. It conducts criminal record checks on prospective agents and paralegals and reviews complaints against agents, paralegals, health care providers, insurance companies, and other financial services sectors. In addition, FSCO audits life agent renewal applications to ensure they meet continuing education (CE) and errors & omissions insurance (E&O) requirements. Paralegals are also subject to E&O audits.
These checks, reviews and audits are the first step in the enforcement process. A significant number of matters are resolved at this first step.
As a follow up to its regular monitoring activities – criminal record checks, the reviews of complaints received and audits of compliance with CE requirements and E&O compliance - FSCO may decide that some matters need to be investigated. An investigation is the second step in the enforcement process. It is used where prosecution or administrative action may be contemplated.
Quarterly Monitoring and Investigation Activity Statistics at a Glance
To resolve enforcement matters, the Superintendent (or his/her delegate) may:
- Issue a Letter of Caution, advising that regulatory action may be taken in the event of another violation.
- Issue Minutes of Settlement, whereby the Superintendent and a person reach an agreement about the appropriate resolution of the non-compliance.
- Issue a notice of proposal that may lead to:
- An Advisory Board hearing
An Advisory Board established under the Insurance Act assists in determining the granting or refusal of a new licence or the possible revocation or suspension of an existing licence for insurance agents and adjusters. The Board considers evidence presented by the applicant or agent, as well as that put forward by counsel for FSCO, and then makes a recommendation to the Superintendent
- A Superintendent’s hearing, or
- A Financial Services Tribunal (FST) hearing
which may result in an order to restrict, suspend or revoke a licence or registration, or a cease and desist/compliance order whereby a person is required to stop specific activities or is ordered to perform acts that are necessary to remedy the situation.
- Make, without prior notice, an interim or temporary order which shall take effect immediately on its making, and which may become permanent on the 15th day after its making unless within that time the person requests a hearing before the FST, where the Superintendent is of the opinion that the interests of the public may be prejudiced or adversely affected by any delay in the issuance of a permanent order.
- Lay charges under the Provincial Offences Act (POA) which may result in a fine, and in the case of a prosecution involving the Mortgage Brokerages, Lenders and Administrators Act, a period of incarceration.
Quarterly Enforcement Activity Statistics at a Glance
is designed to provide you with detailed Enforcement Activity Reports outlining specific actions taken against the following regulated sectors:
For more information on Monitoring & Enforcement at FSCO, see: Monitoring & Enforcement Glossary of Terms.
FSCO investigates allegations against licensed representatives and/or companies that may have engaged in deceptive or illegal practices. To report an allegation of misconduct or non-compliance, write to:
Licensing and Market Conduct Division
Financial Services Commission of Ontario
5160 Yonge Street, Box 85
Toronto ON M2N 6L9