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Financial Services Commission of Ontario Act, 1997
Loi de 1997 sur la Commission des services financiers de l’Ontario

ONTARIO REGULATION 11/01

assessment of expenses and expenditures

Consolidation Period:  From April 1, 2016 to the e-Laws currency date.

Last amendment:  O. Reg. 48/16.

This Regulation is made in English only.

PART I
CREDIT UNIONS SECTOR

1. In this Part,

“assessment period” means the period of time with respect to which the Lieutenant Governor in Council makes an assessment under section 25 of the Act;

“assets” means, with respect to a credit union, the amount shown as the credit union’s total assets in the last Member Institution Return that was required to be filed with the Deposit Insurance Corporation of Ontario by the credit union;

“credit union” means a credit union or caisse populaire to which the Credit Unions and Caisses Populaires Act, 1994 applies;

“credit unions sector” means the entities referred to in clause (b) of the definition of “regulated sector” in section 1 of the Act;

“league” means a league to which the Credit Unions and Caisses Populaires Act, 1994 applies.  O. Reg. 11/01, s. 1; O. Reg. 105/03, s. 1.

2. A credit union’s share of an assessment of the credit unions sector under section 25 of the Act for an assessment period is the greater of $200 or the sum of the following amounts:

1. The amount calculated using the formula,

(A – B) × C/D

in which,

“A” is the total of all expenses incurred and expenditures made by the Commission and the Ministry in respect of the credit unions sector for the assessment period,

“B” is the total of all amounts recovered or recoverable during the assessment period through fees and additional assessments paid or payable by the credit unions sector to the Commission under the Act or to the Minister of Finance under the Credit Unions and Caisses Populaires Act, 1994 for the assessment period,

“C” is the amount of the total assets of the credit union, and

“D” is the amount of the total assets of the credit unions sector excluding the total assets of all leagues.

2. The amount that is the total of any additional expenses incurred and expenditures made by the Commission during the assessment period in connection with a request under subsection 217 (6) of the Credit Unions and Caisses Populaires Act, 1994 for an order directing the board of directors of the credit union to call a general meeting of the members or a meeting of shareholders.  O. Reg. 141/05, s. 1; O. Reg. 389/15, s. 1.

2.1 (1) Subject to subsection (2), a league’s share of an assessment of the credit unions sector under section 25 of the Act for an assessment period is zero.  O. Reg. 141/05, s. 1.

(2) If the Commission does work during an assessment period in response to a request by a league and the work is not related to an examination, investigation or inspection conducted under section 229 of the Credit Unions and Caisses Populaires Act, 1994, the league’s share of an assessment of the credit unions sector under section 25 of the Act for the assessment period is the sum of any expenses incurred and expenditures made during the assessment period by the Commission for the work done.  O. Reg. 141/05, s. 1.

PART II
INSURANCE SECTOR

3. (1) In this Part,

“assessment period” means the period of time with respect to which the Lieutenant Governor in Council makes an assessment under section 25 of the Act;

“insurance sector” means the persons referred to in clause (c) of the definition of “regulated sector” in section 1 of the Act;

“property and casualty insurance” means insurance other than accident and sickness insurance and life insurance.  O. Reg. 11/01, s. 3 (1); O. Reg. 65/07, s. 1 (1).

(2) Words and expressions defined in section 1 of the Insurance Act or under section 43 of that Act have the same meaning in this Part.  O. Reg. 65/07, s. 1 (2).

(3) For the purpose of this Part,

(a) an insurer’s direct premiums for a class of insurance in a year are the premiums paid to the insurer in the year for that class of insurance, other than premiums for that class of insurance paid to the insurer in the year under agreements for reinsurance; and

(b) an insurer’s net premiums for a class of insurance in a year are the premiums paid to the insurer in the year for that class of insurance, including premiums for that class of insurance paid to the insurer in the year under agreements for reinsurance, less premiums for that class of insurance paid by the insurer in the year under agreements for reinsurance.  O. Reg. 11/01, s. 3 (3).

(4) Revoked: O. Reg. 48/16, s. 1.

4. (1) An insurer’s share of an assess­ment of the insurance sector under section 25 of the Act shall be determined in accordance with the following rules:

1. The total amount to be used in determining shares of the assessment shall be equal to the total of all expenses incurred and expenditures made by the Commission and the Ministry in respect of the insurance sector for the assessment period.

2. Calculate the expenses incurred and expenditures made in respect of automobile insurance, in accordance with the following formula:

D = F + (G × 0.85) + (H / 2)

where,

D = the expenses incurred and expenditures made in respect of automobile insurance,

E = Revoked: O. Reg. 48/16, s. 2 (3).

F = the expenses incurred and expenditures made by the Financial Services Commission of Ontario and the Ministry during the assessment period in respect of activities relating to automobile insurance policy and compliance matters, as applicable,

G = the expenses incurred and expenditures made by the Financial Services Commission of Ontario during the assessment period in respect of insurance rates, classifications and actuarial activities,

H = the expenses incurred and expenditures made by the Financial Services Commission of Ontario during the assessment period for the Commission’s Office of the Insurance Ombudsman.

3.-7. Revoked: O. Reg. 48/16, s. 2 (4).

8. Calculate the insurer’s automobile insurance share of the assessment, in accordance with the following formula:

S = (T / U) × D

where,

S = the insurer’s automobile insurance share of the assessment,

T = the insurer’s direct premiums for automobile insurance in Ontario in the year beginning on the January 1 immediately preceding the beginning of the assessment period,

D = the expenses incurred and expenditures made in respect of automobile insurance, calculated under rule 2,

U = the total, for all insurers licensed for automobile insurance during the assessment period, of all direct premiums for automobile insurance in the year beginning on the January 1 immediately preceding the beginning of the assessment period.

9. Calculate the amount to be recovered with respect to activities other than automobile insurance, in accordance with the following formula:

V = A – D – W

where,

V = the amount to be recovered with respect to activities other than automobile insurance,

A = the total amount to be used in determining shares of the assessment, as set out in rule 1,

D = the expenses incurred and expenditures made in respect of automobile insurance, calculated under rule 2,

W = the total revenue collected during the assessment period by the Financial Services Commission of Ontario and the Minister of Finance under the Insurance Act and the Prepaid Hospital and Medical Services Act, other than taxes paid under section 74.4 of the Corporations Tax Act and assessments paid under section 14.1 of the Insurance Act.

10. If the insurer is licensed for property and casualty insurance during the assessment period, calculate the property and casualty insurer assessment rate for insurers that are members of the Fire Mutuals Guarantee Fund or are incorporated or organized under the laws of foreign jurisdictions, in accordance with the following formula:

where,

X = the property and casualty insurer assessment rate for insurers that are members of the Fire Mutuals Guarantee Fund or are incorporated or organized under the laws of foreign jurisdictions,

V = the amount to be recovered with respect to activities other than automobile insurance, calculated under rule 9,

Y = the total, for all insurers that are licensed for property and casualty insurance during the assessment period and that are incorporated or organized under the laws of Ontario and are not members of the Fire Mutuals Guarantee Fund, of all net premiums for property and casualty insurance in the year beginning on the January 1 immediately preceding the beginning of the assessment period,

Z = the total, for all insurers that are licensed for property and casualty insurance during the assessment period and that are members of the Fire Mutuals Guarantee Fund or are incorporated or organized under the laws of foreign jurisdictions, of all net premiums for property and casualty insurance in the year beginning on the January 1 immediately preceding the beginning of the assessment period.

11. If the insurer is licensed for property and casualty insurance during the assessment period and is a member of the Fire Mutuals Guarantee Fund or is incorporated or organized under the laws of a foreign jurisdiction, calculate the insurer’s property and casualty insurance share of the assessment, in accordance with the following formula:

AA = BB × X

where,

AA = the insurer’s property and casualty insurance share of the assessment,

BB = the insurer’s net premium for property and casualty insurance in Ontario in the year beginning on the January 1 immediately preceding the beginning of the assessment period,

X = the property and casualty insurer assessment rate for insurers that are members of the Fire Mutuals Guarantee Fund or are incorporated or organized under the laws of foreign jurisdictions, calculated under rule 10.

12. If the insurer is licensed for property and casualty insurance during the assessment period, is incorporated or organized under the laws of Ontario and is not a member of the Fire Mutuals Guarantee Fund, calculate the insurer’s property and casualty insurance share of the assessment, in accordance with the following formula:

CC = DD × (X + 0.0004)

where,

CC = the insurer’s property and casualty insurance share of the assessment,

DD = the insurer’s net premiums for property and casualty insurance in Ontario in the year beginning on the January 1 immediately preceding the beginning of the assessment period,

X = the property and casualty insurer assessment rate for insurers that are members of the Fire Mutuals Guarantee Fund or are incorporated or organized under the laws of foreign jurisdictions, calculated under rule 10.

13. If the insurer is licensed for accident and sickness insurance or for life insurance during the assessment period, calculate the assessment rate for insurers incorporated or organized under the laws of foreign jurisdictions that are licensed for accident and sickness insurance or for life insurance, in accordance with the following formula:

where,

EE = the assessment rate for insurers incorporated or organized under the laws of foreign jurisdictions that are licensed for accident and sickness insurance or for life insurance,

V = the amount to be recovered with respect to activities other than automobile insurance, calculated under rule 9,

FF = the total, for all insurers incorporated or organized under the laws of Ontario that are licensed for accident and sickness insurance or for life insurance during the assessment period, of all net premiums for accident and sickness insurance and life insurance in the year beginning on the January 1 immediately preceding the beginning of the assessment period,

GG = the total, for all insurers incorporated or organized under the laws of foreign jurisdictions that are licensed for accident and sickness insurance or for life insurance during the assessment period, of all net premiums for accident and sickness insurance and life insurance in the year beginning on the January 1 immediately preceding the beginning of the assessment period.

14. If the insurer is incorporated or organized under the laws of a foreign jurisdiction and is licensed for accident and sickness insurance or for life insurance during the assessment period, calculate the insurer’s share of the assessment for accident and sickness insurance and life insurance, in accordance with the following formula:

HH = II × EE

where,

HH = the insurer’s share of the assessment for accident and sickness insurance and life insurance,

II = the insurer’s net premiums for accident and sickness insurance and life insurance in Ontario in the year beginning on the January 1 immediately preceding the beginning of the assessment period,

EE = the assessment rate for insurers incorporated or organized under the laws of foreign jurisdictions that are licensed for accident and sickness insurance or for life insurance, calculated under rule 13.

15. If the insurer is incorporated or organized under the laws of Ontario and is licensed for accident and sickness insurance or for life insurance during the assessment period, calculate the insurer’s share of the assessment for accident and sickness insurance and life insurance, in accordance with the following formula:

JJ = KK × (EE + 0.0004)

where,

JJ = the insurer’s share of the assessment for accident and sickness insurance and life insurance,

KK = the insurer’s net premiums for accident and sickness insurance and life insurance in Ontario in the year beginning on the January 1 immediately preceding the beginning of the assessment period,

EE = the assessment rate for insurers incorporated or organized under the laws of foreign jurisdictions that are licensed for accident and sickness insurance or for life insurance, calculated under rule 13.

16. Calculate the sum of the following amounts that apply to the insurer:

i. The insurer’s automobile insurance share of the assessment, calculated under rule 8.

ii. The insurer’s property and casualty insurance share of the assessment, calculated under rule 11 or 12.

iii. The insurer’s share of the assessment for accident and sickness insurance and life insurance, calculated under rule 14 or 15.

17. The insurer’s share of the assessment under section 25 of the Act is equal to the greater of the amount calculated under rule 16 and,

i. $1,000, if the insurer is not a fraternal society, or

ii. $100, if the insurer is a fraternal society.  O. Reg. 11/01, s. 4 (1); O. Reg. 65/07, s. 2; O. Reg. 415/07, s. 2 (1-4); O. Reg. 389/15, s. 2; O. Reg. 48/16, s. 2 (1-5).

(2) Revoked: O. Reg. 48/16, s. 2 (6).

PART III
LOAN AND TRUST SECTOR

5. In this Part,

“assessment period” means the period of time with respect to which the Lieutenant Governor in Council makes an assessment under section 25 of the Act;

“assets” includes, with respect to a trust corporation as defined in the Loan and Trust Corporations Act, the aggregate of company funds, guaranteed funds and assets held for administration under estates and trusts;

“loan or trust corporation” means a corporation registered under the Loan and Trust Corporations Act;

“loan and trust sector” means the persons referred to in clause (d) of the definition of “regulated sector” in section 1 of the Act.  O. Reg. 11/01, s. 5; O. Reg. 141/05, s. 2.

6. A loan or trust corporation’s share of an assessment of the loan and trust sector under section 25 of the Act for an assessment period is the amount calculated using the formula,

(A – B)/C

in which,

  “A” is the total of all expenses incurred and expenditures made by the Commission and the Ministry in respect of the loan and trust sector for the assessment period,

  “B” is the total of all fees paid or payable during the assessment period by the loan and trust sector to the Commission under the Act or to the Minister of Finance under the Loan and Trust Corporations Act, and

  “C” is the number of loan or trust corporations registered under the Loan and Trust Corporations Act at any time during the assessment period.

O. Reg. 141/05, s. 3; O. Reg. 389/15, s. 3.

part iv
pension sector

7. (1) In this Part,

“assessable pension plan” means a pension plan,

(a) for which an application for registration under section 9 of the Pension Benefits Act has been filed, or

(b) for which a certificate of registration has been issued under section 16 of that Act;

“assessment period” means the period of time with respect to which the Lieutenant Governor in Council makes an assessment under section 25 of the Act;

“discontinued plan” means a pension plan for which an annual information return has been filed under section 29.1 of Regulation 909 of the Revised Regulations of Ontario, 1990 (General) made under the Pension Benefits Act at any time before the beginning of the applicable assessment period;

“pension sector” means the entities referred to in clause (f) of the definition of “regulated sector” in section 1 of the Act.  O. Reg. 133/07, s. 1.

(2) Words and expressions relating to pension plans have the same meaning in this Part as they have under the Pension Benefits Act.  O. Reg. 133/07, s. 1.

8. An entity’s share of an assessment of the pension sector under section 25 of the Act for an assessment period is the following:

1. For the administrator of an assessable pension plan, other than a discontinued plan, the share calculated in accordance with section 9.

2. For the administrator of a discontinued plan, nil.

3. For any other entity in the pension sector, nil.  O. Reg. 133/07, s. 2.

9. For the purposes of paragraph 1 of section 8, the share of the assessment payable by the administrator of an assessable pension plan for an assessment period is calculated by,

(a) determining the preliminary amount of the assessment for the pension plan under section 10 for the assessment period;

(b) determining the adjustment amount for the pension plan under section 11 for the assessment period; and

(c) adding the adjustment amount to the preliminary amount of the assessment.  O. Reg. 133/07, s. 2.

10. (1) Subject to subsections (2) and (3), the preliminary amount of the assessment for an assessable pension plan for an assessment period is the amount calculated using the formula,

(A × $6.15) + (B × $4.25)

in which,

  “A” is the number of members of the pension plan on the December 31 that falls within the assessment period, determined as specified in subsection (4), and

  “B” is the number of former members, retired members and other beneficiaries of the pension plan on the December 31 that falls within the assessment period, determined as specified in subsection (4).

O. Reg. 133/07, s. 2; O. Reg. 415/07, s. 3 (1); O. Reg. 183/12, s. 1 (1).

(2) If the amount calculated under subsection (1) is less than $250, the preliminary amount of the assessment for the pension plan is $250.  O. Reg. 133/07, s. 2.

(3) If the amount calculated under subsection (1) is greater than $75,000, the preliminary amount of the assessment for the pension plan is $75,000.  O. Reg. 133/07, s. 2.

(4) The number of members and the number of former members, retired members and other beneficiaries of a pension plan on the December 31 that falls within the assessment period is the number of each indicated in the most recent annual information return filed with the Commission under the Pension Benefits Act on or before that December 31 or, in the absence of such a return, the number of each indicated in the application for registration of the pension plan submitted under that Act.  O. Reg. 133/07, s. 2; O. Reg. 415/07, s. 3 (2); O. Reg. 183/12, s. 1 (2).

11. (1) The adjustment amount for an assessable pension plan for an assessment period is the amount calculated using the formula,

(C – D – E) × F/E

in which,

  “C” is the total of all expenses incurred and expenditures made by the Commission in respect of the pension sector for the assessment period, other than the reasonable expenses charged to the Pension Benefits Guarantee Fund by the Superintendent under subsection 82 (3) of the Pension Benefits Act,

  “D” is the total of all amounts recovered or recoverable during the assessment period by the pension sector to the Commission under the Act or to the Minister or the Superintendent under the Pension Benefits Act for the assessment period, excluding the assessments calculated under this Regulation,

  “E” is the sum of the preliminary amount of the assessment for every assessable pension plan for the assessment period, as determined under section 10 for each pension plan, and

“F” is the preliminary amount of the assessment for the particular pension plan for the assessment period, as determined under section 10.

O. Reg. 133/07, s. 2.

(2) The adjustment amount for a pension plan may be a negative number.  O. Reg. 133/07, s. 2.