Ontario’s government has signalled that it intends to launch discussions on crypto regulation in the months ahead, confirmed the delay in the launch of new insurance sector regulation and highlighted planned changes for pensions.
In Thursday’s provincial budget, the government indicated that it’s planning “targeted stakeholder roundtable discussions” on digital asset regulation in the coming months, as it aspires to position the province as a “global leader in digital asset innovation.”
Alongside that effort, the province said it’s also actively working with the federal government on a regulatory regime for stablecoins.
“These activities will strengthen Ontario’s position in the emerging financial technologies sector and advance the province’s ambition to become an international hub for entrepreneurial finance — where robust capital formation drives breakthrough innovation, high-value job creation and long-term economic growth,” it said.
Elsewhere in the budget, the government confirmed the delay in the planned regulatory framework for managing general agents (MGAs), which was slated to launch on June 1 — allowing for more time to consider the results of the consultation on that regime that took place last year.
That consultation raised a number of concerns from the industry, including criticism of the scope of the proposed rules and the potential unintended consequences that could result in compliance costs for the industry that exceed the benefit of enhanced protections for consumers.
In late February, the Financial Services Regulatory Authority of Ontario (FSRA) announced that it was pausing work to finalize the regime ahead of the June deadline.
In Thursday’s budget, the government said it “will continue to engage with the sector as next steps on the framework are determined.”
Additionally, the budget highlighted a series of planned reforms for pensions — including a proposed doubling of the guarantee provided for defined benefit (DB) pensions through the Pension Benefits Guarantee Fund from $1,500 per month to $3,000 per month, along with proposed regulatory changes to support the consolidation of stand-alone DB pensions into jointly sponsored pension plans.
The government is also proposing legislation to enable defined contribution plans to offer a new variable life benefit (VLB) that would be managed and administered by pension plans. Similar to an annuity, the benefit would provide variable payouts tied to the performance of its investments (and retiree mortality).
Following public consultations later this year, the government is proposing to allow for the launch of VLBs by Jan. 1, 2027.
“The VLB framework would require comprehensive disclosure to retirees to ensure transparency and support informed decision-making,” the budget noted, adding that it will also “provide flexibility for plan sponsors to design features that best suit their retirees.”
Finally, the government noted that it’s working toward the implementation of a beneficial ownership registry in 2027 as part of its efforts to combat money laundering and other forms of financial crime.