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28 www.canadianlawyermag.com/inhouse DEPARTMENT PROFILE FAST FACTS: FSRA officially started regulating financial services and pensions in Ontario on June 8, 2019 FSRA was established as a self-funded Crown corporation There are 35 members of the FSRA's legal and investigations department The board of directors consists of members who are appointed by the lieutenant governor in council on the recommendation of the Minister of Finance FSRA aims to foster a competitive, sustainable financial services sector SINCE ITS LAUNCH in June 2019, the Financial Services Regulatory Authority has worked hard to establish credibility as a modern regulator while also aspiring to be a principles-based organization that protects public interest. The independent, self-funded regulator was established to replace the Financial Services Commission of Ontario and the Deposit Insurance Corporation of Ontario as the province's new regulator of financial services and pensions. The legal team, which consists of 35 people, including investigators, law clerks and support staff, is dedicated to establishing a framework of rules and regulations while simultaneously facilitating innovation and flexibility. As the replacement for legacy regulators, it is important to the legal team at FSRA to maintain regulatory continuity to the greatest extent possible while also adapting to a new, more flexible culture that is open to new ideas and changing consumer needs. "Shutting down a legacy regulator and creating a new one is kind of like going through an M&A," says Jordan Solway, executive vice president, legal and enforcement at FSRA. "You have to make sure there is a proper Building credibility as a modern regulator The Financial Services Regulatory Authority's Jordan Solway discusses the challenges of establishing a new regulator's mandate transfer of the powers of authority." Since its launch, FSRA has been hiring extensively to double staff numbers. The team strives to build a less hierarchical, more nimble structure than a traditional regulator because it deals with multiple sectors including credit unions, insurance, pensions, mortgage brokers and financial advisors. "Culture shifts are always very challenging," says Solway. "In my experience, they have to start from the bottom up and can't be pushed from the top down. One of the things we've aspired to do since we started last year is trying to be principles-based so, as a regulator applying a framework of rules and regulations, we're also trying to regulate according to identified principles that are related to outcomes. When there is regulatory discretion, we're trying to use it in a way that facilitates innovation and better consumer choice in our sectors so that is an ongoing challenge." In addition to its regulatory responsibilities, FSRA's legal department gives legal advice and provides an enforcement function as well as supporting HR, IT, risk management and the board of directors through a corporate secretary function. It also provides a