FSRA defines 'vulnerable consumers' in new framework, including pension beneficiaries
May 21, 2025
The Financial Services Regulatory Authority of Ontario (FSRA) has released its Vulnerability Framework for strengthening the protection of vulnerable consumers, including pension plan members and beneficiaries.
The framework was developed in response to a 2024 consultation in which stakeholders indicated that this topic required attention from the regulator (e.g., establish a clear definition of vulnerable consumers and strengthen education efforts).
The new definition identifies individuals who are “at higher risk of experiencing financial mistreatment, hardship, or harm, due to various factors and personal circumstances, including health, social, and economic factors, as well as major life events." As noted above, this group includes pension plan members and beneficiaries, and others who benefit from products and services in FSRA-regulated sectors.
FSRA published the Vulnerability Framework through ‘Information Guidance’, indicating that it describes FSRA’s view on the topic without creating new compliance obligations for regulated entities.
The Vulnerability Framework also acknowledges the unique nature of FSRA’s role in the pensions sector as compared to other areas in which its responsibility extends to licensing and conduct oversight. FSRA noted that “[f]or the Pensions sector, the Framework should be understood as confined only to FSRA’s activities that promote public education and knowledge about vulnerable pension plan members and beneficiaries.”.
Click on ‘More Information’ below to review the Vulnerability Framework:
