How FSCO Monitors, Investigates and Where Warranted Takes Enforcement Actions on the Sectors it Regulates

Monitoring Activities | Investigation Activities | Enforcement Actions | About Monitoring and Enforcement Online
FSCO's Market Conduct Compliance | How to Report an Allegation of Misconduct or Non-Compliance

FSCO administers 11 statutes that govern the following financial services operating in the province of Ontario.

To protect consumers and plan members and enhance public confidence, FSCO monitors, investigates and when there is non-compliance with legislation and regulations, takes appropriate enforcement action against the sectors it regulates.

Monitoring Activities

FSCO undertakes a number of monitoring activities as part of its regulatory functions. It conducts police background 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.

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Investigation Activities

As a follow up to its regular monitoring activities – police background 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.

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Enforcement Action

Non-compliance with legislation and regulations may result in enforcement action.

To resolve enforcement matters, the Superintendent (or his/her delegate) may:

• Issue a Letter of Caution, advising that stronger regulatory action will 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.
• Partake in:
  • 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
  • Financial Services Tribunal (FST) hearing

  which may result in a Superintendent’s Order to restrict, suspend or revoke a licence or registration, or a Cease and Desist Order whereby a person is required to stop specific activities or is ordered to perform acts that are necessary to remedy the situation.

  Under the Insurance Act, if the Superintendent intends to make an Order, a notice must first be given to those who may be affected and an opportunity for a hearing must be provided. Such a hearing can occur only in specific limited circumstances which are set out in the relevant statute.

  Where there is a request for a hearing, the FST will hear the matter and decide whether or not the proposed Order should be made. Where there is no request for a hearing, the Superintendent may make the Order set out in the notice.

  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, the Superintendent, without prior notice, may make an interim or temporary order which shall take effect immediately on its making, and which shall become permanent on the 15th day after its making unless within that time the person requests a hearing before the FST.

• 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.

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About Monitoring & Enforcement Online

FSCO's Monitoring & Enforcement Online site is designed to provide you with:

• Quarterly statistics on the Commission’s various Monitoring, Investigation and Enforcement Activities for the following regulated sectors:

• Insurance – Monitoring, Investigations and Enforcement
• Mortgage Brokers – Monitoring, Investigations and Enforcement
• Credit Unions & Caisses Populaires – Monitoring, Investigations and Enforcement
• Loan & Trust Corporations – Monitoring, Investigations and Enforcement
• All-Sector Totals – Monitoring, Investigations and Enforcement

• Detailed Enforcement Activity Reports outlining specific actions taken against the following regulated sectors:

• Insurance – Agents, Corporate Agencies , Companies, Company Reps, Paralegals
• Mortgage Brokers
• Credit Unions & Caisses Populaires
• Loan & Trust Corporations
  
  
• As well as detailed Special Award and Orders Against Representatives Dispute Resolution Arbitration & Appeal Decision Summaries

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