The Financial Services Commission of Ontario has published its statement of priorities for the coming year.

FSCO pledges to provide a fair and balanced regulatory approach, be a leader in financial services regulation in Canada, promote and vigorously enforce compliance, and deliver a high standard of customer service.

To improve fairness the commission will work to improve the efficiency and effectiveness of regulatory processes. It will also work with auto insurance stakeholders to maintain a fair and stable system. FSCO also plans to review its fee structure.

The commission says it will propose regulatory amendments to permit flexible pension plans, which allow members to purchase ancillary benefits through optional tax-deductible contributions.

FSCO will also review financial information reporting requirements for pension plans. In the insurance sector, it is continuing its review of licensing and supervision requirements.

The commission is also designing a proposal for a regulatory system for viatical settlement business.

In the coming year, FSCO will continue discussions on the possible transfer of FSCO’s prudential examination work to the federal regulator. At the same time, it will review the cost accounting framework and consider revisions to the allocation methodology as needed. Insurance licensing and mortgage broker fees will be reviewed.

FSCO says that in the coming year, itwill continue to provide leadership and support for national co-ordination through: The Joint Forum of Financial Market Regulators, the Canadian Association of Pension Supervisory Authorities, the Canadian Council of Insurance Regulators and the Canadian Securities Administrators.

Out of that work, FSCO expects to recommend revised insurance industry guidelines regarding segregated funds for approval as an Ontario regulation in 2001-2002. It expects to release a draft code of conduct for financial intermediaries for consultation in the summer of 2001.