FSCO Releases Final Risk-Based Regulation Framework for Pension Plans
The Financial Services Commission of Ontario (FSCO) posted the finalized Risk-Based Regulation Framework for the risk-based regulation of pension plans in Ontario. The final framework takes into consideration stakeholder comments and feedback.
The core of the framework is a Regulatory Response Model that includes a trigger mechanism to identify plans posing the greatest risk. If a plan is selected for review, a risk assessment will be performed. Focus is on five risk areas:
- funding risk
- investment risk
- administration risk
- governance risk
- sponsor/industry risk
The proposed framework significantly changes the way FSCO regulates. Implementation will be phased in over the next three years.
|