Financial Services Regulatory Authority is Ontario’s new pension regulator
On June 8, 2019, the Financial Services Regulatory Authority of Ontario (FSRA) became the regulator for Ontario’s non-securities financial services sector, including the pension sector, replacing the Financial Services Commission of Ontario (FSCO). The amendments to legislation, including to the Financial Services Regulatory Authority of Ontario Act, 2016 and the Pension Benefits Act (PBA), that were needed to enable this handover also became effective on that date.
FSRA providing one-time opportunity to address late filings and avoid penalties
FSRA is giving pension plans sponsors who have missed filing deadlines a one-time opportunity to bring their plans into compliance by October 31, 2019 and avoid the administrative monetary penalties their plans would otherwise incur. FSRA will be contacting plans with outstanding filings. This opportunity only applies to filings due before September 30, 2019.
Revised framework proposed for electronic communications
The Ontario government has proposed draft amendments to the Pension Benefits Act (PBA) on electronic communications that would permit plan administrators to use electronic communications as the default method (with no consent required) to send documents to members and former members (but not retired members or other beneficiaries). In order to do so, the plan administrator would have to ensure that all affected members:
- Receive prior notice of its intention to use the default method; and
- Can "opt-out" of receiving documents electronically at any time by requesting paper documents.
All documents containing personal information, if sent electronically, would have to go through a secure information system that requires the intended recipient to identify him or herself before accessing the documents. FSRA would be able to make rules on additional safeguards.
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