To the attention of all insurance companies
licensed to transact automobile insurance in Ontario
With this Bulletin, the Financial Services Commission of Ontario (FSCO) is releasing an updated Professional Services Guideline – Superintendent’s Guideline No. 04/10 (Guideline).
This updated Guideline recognizes the change from the Goods and Services Tax (GST) to the Harmonized Sales Tax (HST), which goes into effect on July 1, 2010. It also incorporates a 0.3 per cent increase in fees based on the 2009 Consumer Price Index for expenses related to services rendered on or after July 1, 2010.
This Guideline will be in effect from July 1, 2010. A revised Guideline will be issued subsequently to take into account the reforms under the Statutory Accident Benefits Schedule – Effective September 1, 2010.
Authority
This Guideline is issued by FSCO under subsection 268.3 (1) of the Insurance Act for the purposes of subsections 14 (4), 15 (6), 17 (2) and 24 (2) of the Statutory Accident Benefits Schedule – Accidents on or After November 1, 1996.
Changes
With the implementation of the HST, this Guideline provides direction on how the tax is to be applied. When applicable, the HST is payable by an insurer in addition to the rates and fees that are outlined in this Guideline.
The applicability of the HST falls under the jurisdiction of the federal government’s Canada Revenue Agency (CRA). For additional information regarding the applicability of the HST, please visit the CRA’s website at www.cra-arc.gc.ca or contact them by telephone at 1-800-959-5525.
Copies
The Guideline is attached for your information and can also be downloaded from the FSCO website at www.fsco.gov.on.ca. In addition, the Guideline will be published in a forthcoming edition of The Ontario Gazette.
Philip Howell
Chief Executive Officer and
Superintendent of Financial Services
June 18, 2010
Attachment: