fsco dico fst mandate review.pdf

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March 31, 2016
The Honourable Charles Sousa
Minister of Finance
7 Queen’s Park Crescent, 7th floor
Toronto, Ontario
M7A 1Y7
Dear Minister Sousa,
Attached is our Final Report regarding the mandate reviews of the Financial Services
Commission of Ontario (FSCO), Financial Services Tribunal (FST), and the Deposit Insurance
Corporation of Ontario (DICO).
You will notice that most recommendations remain similar to those outlined in the Preliminary
Position Paper we circulated to elicit public comment last fall. Now, having received nearly
fifty submissions and made appropriate adjustments, we are confident our proposals for a
world-class regulatory system will be supported broadly.
Our recommendations were prepared with both the present and the future in mind, and in light
of industry and regulatory trends here and worldwide. It became clear to us that the mandate of
the agencies under review should be modernized and that significant changes in governance,
structure and associated accountability mechanisms are necessary to improve mandate
With financial services and pensions sectors changing at a rapid pace, we need a regulator that
is sufficiently independent, flexible, innovative, and expert. We do not believe a thorough
transformation could be accomplished within the current regime. So we have recommended a
new, independent and integrated regulator called the Financial Services Regulatory Authority
To ensure adjudicative independence, the FST should be separated from the regulator and
have its resourcing improved. While DICO has met the needs of Ontarians as the deposit
insurer for credit unions and caisses populaires, we believe independence and efficiency could
be enhanced by transferring its regulatory functions to FSRA at an appropriate time.
We would like to acknowledge the assistance provided by Ministry of Finance staff over the
course of this review. We also want to thank you for the opportunity to conduct this mandate
review of the agencies — it has been a rewarding experience. We remain available should
you have any questions or concerns.
Yours truly,

George Cooke

James Daw

Lawrence Ritchie