Ontario government supports FSRA, CCMR in fiscal update

While the Ontario government doesn’t support recent regulatory proposals, it does support streamlined regulation—including the establishment of a national securities regulator and the new financial services and pensions regulator.

The Progressive Conservative government said Thursday in its fall economic statement that the province is committed to the Cooperative Capital Markets Regulatory System (CCMR) and the Financial Services Regulatory Authority (FSRA).

In September, Premier Doug Ford’s government said that it doesn’t support a proposed ban on deferred sales charges for mutual funds.

Ontario will “respect the decision of the Supreme Court of Canada in pursuing streamlined capital markets regulation,” says Thursday’s statement, referring to a ruling earlier this month confirming that the Constitution allows for a national regulator.

Read: Ontario won’t go along with federal passive income rules

Read: Supreme Court says national securities regulator plan is constitutional

In a press release, IIAC commends that stated support, which adds “needed momentum” to the cooperative regulator.

To support the launch of FSRA, which replaces the Financial Services Commission of Ontario, the statement says the Ontario government is working on a plan to make the new regulatory body “fully operational, with a focus on reducing red tape […].”

Part of that streamlining includes introducing provincial legislative amendments to amalgamate the Deposit Insurance Corporation of Ontario, including the Deposit Insurance Reserve Fund, with FSRA.

Additional legislative amendments will be introduced to transfer administrative responsibility for the Motor Vehicle Accident Claims Fund, a non-regulatory function performed by the current regulator, to the Ministry of Government and Consumer Services. That way, FSRA can focus on its mandate to regulate auto insurance, financial services and pensions in Ontario, the economic statement says.

In its press release, IIAC commends the legislative amendments, saying FSRA will “play a key role in harmonizing rules and regulatory process in the Ontario financial sector.”

Other measures mentioned in the economic update and commended by IIAC include proposed legislative amendments to regulate the Canadian Dollar Offered Rate and the Canadian Overnight Repo Rate Average, key Canadian financial benchmarks; consistent regulatory oversight of financial planners and advisors; and action to urge the federal government to permit immediate corporate expensing of depreciable assets—similar to a measure in the U.S. tax reform package.

Referring to immediate corporate expensing, IIAC says in its press release: “The competitiveness of the Canadian and Ontario tax system would improve measurably, encouraging domestic and foreign capital spending.”

Read the Ontario economic statement and IIAC’s release.

Also read:

PMAC, IIAC outline concerns about CCMRS exemptions