Moving beyond regulatory checklists to better protect consumers

TORONTO, March 16, 2022 /CNW/ - The Financial Services Regulatory Of Ontario (FSRA) Is Setting Out Its Approach To Principles-based Regulation, Which Will Enhance Consumer Protection, Facilitate Innovation And Ultimately Lead To More Efficient And Effective Regulation.

Where possible, FSRA is moving away from "prescriptive checklists" and encouraging entities to internalize regulatory requirements and work towards achieving desired regulatory outcomes based on their size, complexity, and risk profile.

Adopting principles-based regulation represents an important cultural change for both the regulator and the regulated, now putting the emphasis on communication, collaboration and transparency on both sides of the regulatory relationship. It will also place greater reliance on a regulated entity's senior management, and its board of directors, to achieve desired outcomes and to demonstrate how they have achieved desired outcomes.

FSRA's proposed Principles-Based Regulation Approach Guidance being issued today sets out:

• FSRA's Framework Principles for principles-based and outcomes-focused regulation ("Framework Principles");
• How principles-based regulation is reflected in FSRA's approach to regulation and supervision; and
• How FSRA's Framework Principles will be implemented.

The proposed guidance will be open for public consultation until April 29, 2022.

Principles-based regulation is fundamental to FSRA's rules, guidance and regulatory approach and decision-making, and 'comes to life' in how it supervises the entities and individuals it regulates.

Learn more:

• Proposed Principles-Based Regulation Guidance
• Consultation on proposed Principles-Based Regulation Guidance

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.

SOURCE Financial Services Regulatory Authority of Ontario

For media inquiries: Russ Courtney, Senior Media Relations and Digital Officer, Financial Services Regulatory Authority, C: 437-225-8551, Email: [email protected]