Introduction

The Red Tape Challenge is an important part of Ontario’s Business Growth Initiative. The feedback we receive will help us modernize business regulations to be outcome-focused and evidence-based while continuing to protect the public interest. Other sectors participating in the challenge include auto parts manufacturing, food processing, mining, chemical manufacturing, forestry and tourism.

The financial services report is based on a review of all the comments and ideas submitted during the financial services round of the Red Tape Challenge. The government worked with technical experts to analyze the feedback, research best practices in other locations, and prioritize the changes that have the most opportunity to save businesses time and money.

The financial services consultation ran from December 1, 2016 to January 31, 2017. The government received a wide range of public comments.

Through the consultation, 71 potential opportunities were identified to improve regulations or reduce regulatory burdens for Ontario businesses and other partners involved in the financial services sector.

As a result of the consultation, we are:

  • creating a plan that acts on 51 opportunities to modernize regulations – 12 of these items will be addressed in the next three years
  • continuing to monitor the remaining 39 opportunities and explore how best to take action
  • not taking action on the remaining 20 opportunities because they could increase burdens, do not fall under provincial authority or are not regulatory issues under the mandate of the Red Tape Challenge

In March 2014, the government set a goal of achieving $100 million in savings for businesses by the end of 2017. To date, as reported in the 2017 Burden Reduction Report, we have surpassed that goal by more than 50%. The province’s burden reduction initiatives have reduced business costs by $152 million since 2011.

Regulatory modernization principles

The Ontario government reaffirmed its commitment to modernizing regulations in the 2016 Fall Economic Statement. Additionally, the province’s Regulatory Modernization Committee formulated six principles that will serve as a lens through which to view burden reduction activities:

  1. Focus on the user by writing regulations in plain language and creating a single point of contact for business to access information or government services.
  2. Use industry standards (e.g., ISO) where available/appropriate to eliminate redundant reporting requirements.
  3. Move to risk-based inspections to reduce the enforcement burden on businesses with a strong safety and compliance record, using accreditation to distinguish good actors from high-risk targets; better coordinate inspections among ministries and agencies.
  4. Create a “tell us once” culture where all ministries that interact with business use the Business Number so businesses do not provide the same information to government repeatedly.
  5. Apply a small business lens by setting different compliance paths to achieve desired outcomes, rather than using a “one size fits all” approach.
  6. Go digital and reduce paper-based transactions by delivering simple and straightforward digital services and products that will modernize public service delivery and make government work better for businesses.

New legislation to cut unnecessary red tape

As part of its work on regulatory modernization, the province is introducing proposed measures this fall to help small businesses and new legislation to help save Ontario businesses time and money.

  1. Reducing regulatory costs: requiring all ministries to offset every dollar of new administrative costs to business, by removing $1.25 of old and unnecessary costs.
  2. Streamlining compliance for small business: ensuring that undue burdens aren't placed on small businesses when new or amended regulations are introduced, while maintaining robust environmental, health and safety requirements and other public interest protections.
  3. International or national standards alignment: increasing harmonization with other jurisdictions and adopting international or national standards, where appropriate, when developing or reviewing regulations.
  4. Rewarding good actors: recognizing businesses that have a good compliance record and lowering their costs by reducing the requirements, such as the number of inspections, without compromising the environment, health and safety, and other protections.
  5. Electronic transmission guarantee: providing businesses the option to electronically submit any required documentation to the Government of Ontario instead of more costly paper submissions.
  6. Government procurement: introducing a preferred procurement policy for small businesses that would help provide better access to government contracts.
  7. One-window service: developing a new program that would help small businesses access support, information and resources by phone, online and in person.
  8. Reducing fees and other costs: reviewing licence and registration fees paid with a goal of providing relief to small- and medium-sized businesses.

These proposed changes support Ontario’s five-year, $650-million Business Growth Initiative that is helping to grow the economy and create jobs by promoting an innovation-based economy, helping small companies scale up and modernizing regulations for businesses.

Participation numbers

110
acts or regulations
that apply to the financial services sector were posted.
232
comments
in total.
15,002
visits
to the Red Tape Challenge website throughout the financial services sector consultation.
13
ministries
are responsible for this legislation.
51
opportunities
to modernize regulations are being acted upon by the government.
49
acts or regulations
were commented on.