The Financial Services Commission of Ontario has released its statement of priorities for comment.

FSCO is required to deliver the statement to the Minister of Finance and publish by June 30. It is seeking comments on its preliminary statement by May 27.

FSCO says that its strategic priorities include working with the Ministry of Finance and the Ontario Securities Commission on the creation of the Ontario Financial Services Commission.

It also plans to develop harmonized solutions to regulatory issues through the Joint Forum of Financial Market Regulators, and coordinate the treatment of regulatory issues in the insurance and pension sectors.

It also intends to: continue to develop proposed changes to the auto insurance system; support Government amendments to the Insurance Act that establish the role of the appointed actuary, and develop a flexible prudent portfolio investment approach for insurers; make proposals to modernize the regulatory framework for mortgage brokers; and implement a regulatory regime for viatical settlements once the Government proclaims regulations.

On the enforcement front, it plans to conduct Phase Two of the Life Insurance Company Market Conduct audit. develop a Market Conduct self-assessment questionnaire for property and casualty insurers for use in future audits, and apply a risk-based approach to the Pension Plan Examination Program.

It also plans to use more electronic communication to find efficiency gains.

FSCO forecasts an expenditure increase due to a rise in caseload activity in the Dispute Resolution Group. It also expects increases in insurance revenues for fiscal year end 2002 over 2001. This forecast principally reflects an increase in revenues from dispute resolution fees to cover the cost of the increase in activity in the Dispute Resolution Group and the biannual increase in life agents licence fees.