The Ontario government announced a number of measures within Wednesday’s budget to enhance consumer and investor protection, boost the enforcement capabilities of the Ontario Securities Commission (OSC) and to address the need among clients of the financial services industry for better access to restitution.
Included in those proposals is the launch of a Serious Fraud Office (SFO), which will initially focus on auto insurance fraud. However, the government added that the Ministry of the Attorney General and the (OSC) “will explore new opportunities to support and coordinate activities,” including through the SFO.
Additionally, the Ontario government is promising to beef up the OSC’s enforcement capabilities, including the introduction of new offences for breach of an undertaking and for obstruction of the commission’s investigations. It also proposes to give the OSC the authority to automatically make reciprocal orders, which some provinces already do, allowing it to enforce orders by other Canadian securities regulators in Ontario.
The government said that it will work with the OSC to “strengthen the framework for securing compensation for investors who suffer financial losses due to the acts or omissions of registered firms.” An independent review has recommended that the industry ombudservice be given the power to make binding compensation recommendations.
Also in the budget is a proposal to establish a regulatory regime for financial benchmark administrators, contributors and users. The aim of this initiative is to reduce the risk of benchmark manipulation, such as the LIBOR trading scandal that emerged several years ago.
Along with these policy measures, the budget also reiterates the government’s promises to regulate financial planners (it released a consultation paper on this matter earlier this month); to establish the Financial Services Regulatory Authority of Ontario (FSRA); and, to establish the Co-operative Capital Markets Regulator (CCMR).
Financial Planning Standards Council (FPSC) welcomes the Ontario government’s continued progress toward restriction of the title “Financial Planner” with 2018 budget.
“FPSC is pleased by the Ontario government’s continued commitment to restriction of the title ‘Financial Planner’,” says Cary List, FPSC president and CEO, in a statement.