This Bulletin highlights an Order in Council that changes the effective dates of specified sections of the Prosperous and Fair Ontario Act (Budget Measures), 2013 affecting service providers.
Order in Council 468/2014 directed the issuance of a proclamation in respect of the Prosperous and Fair Ontario Act (Budget Measures), 2013. The proclamation, issued on March 26, 2014, named May 1, 2014 as the day on which Schedule 6 and sections 5, 12, 14 and 16 to 18 of Schedule 8 to the Act would come into force. The proclamation also named November 1, 2014 as the day on which section 15 of Schedule 8 to the Act would come into force.
The new Order in Council 737/2014 amends the proclamation by striking out "May 1, 2014" in both places where it appears and substituting in each case "June 1, 2014", and by striking out "November 1, 2014" and substituting "December 1, 2014".
In summary, this means that the earliest date that FSCO will begin accepting licensing applications has been changed to June 1, 2014 and the date that service providers must be licensed to continue to be paid directly by insurers has been changed to December 1, 2014.
Effect of the Proclamation Order:
The following parts of the Prosperous and Fair Ontario Act (Budget Measures), 2013 now come into force on June 1, 2014:
- Schedule 6, that amends the definition of "regulated sector" in the Financial Services Commission of Ontario Act, 1997 by adding all holders of a service provider's licence
- Schedule 8, sections 5, 12, 14 and 16 to 18 that amend the Insurance Act by establishing the service provider licensing framework and by adding definitions and regulatory making authority for classes of service providers licences, “listed expenses”, exceptions from "listed expenses", a public registry, standards for business systems and practices, the principal representative, requirements to obtain a licence and circumstances when a licence may be revoked, suspended or surrendered
The following part now comes into force on December 1, 2014:
- Schedule 8, section 15 that amends the Insurance Act by restricting insurers' payments for listed expenses directly to a person who does not hold a service provider’s licence at the applicable time.
The proclamation order is expected to be published in the April 26, 2014 edition of The Ontario Gazette.
The Order in Council 737/2014 can be found at www.e-laws.gov.on.ca . Subscribe to FSCO's monthly Service Providers e-Newsletter to receive important service provider licensing framework updates by email.
Chief Executive Officer and
Superintendent of Financial Services
April 25, 2014