FSRA issues consumer guidance on new types of financial or decumulation products

TORONTO, Jan. 10, 2024 /CNW/ – The Financial Services Regulatory Authority of Ontario (FSRA) is taking steps to educate and protect consumers who are retired or planning for retirement.

FSRA Logo / Logo d’ARSF (CNW Group/Financial Services Regulatory Authority of Ontario)

FSRA is releasing information guidance that explains distinctions between decumulation products and pension or insurance products. It also offers some important questions consumers should consider before investing.

Decumulation products are a new type of financial product consumers can use to draw down on their savings during their retirement while not outliving those savings.

Consumers considering investing in these types of decumulation products should talk to their financial planner, life insurance agent or securities advisor to understand what they are buying, whether it is right for them and what guarantees apply.

“As more investors move into the phase of life where they’re looking to find ways to live on their savings, this product area is likely to experience further growth,” said Stuart Wilkinson, Chief Consumer Officer at FSRA. “Decumulation products may pool funds in an attempt to achieve investment and longevity benefits, but there are risks involved. Our Guidance is intended to help Ontario’s aging population fully understand those risks before making an investment.”

Marketing materials for these financial products may describe them as pension plans or use terms associated with insurance (such as “annuity,” “guaranteed income,” “income for life,” or “tontine”), but they:

  • are not subject to the same protections as registered pension plans or insurance products;

  • carry a number of consumer risks; and

  • are not regulated by FSRA.

These products are typically investment or mutual funds regulated by the Ontario Securities Commission (OSC).

Learn More

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.



Russ Courtney 
Sr. Manager, Media Relations
Financial Services Regulatory Authority 
C: 437-225-8551
Email: [email protected]

SOURCE Financial Services Regulatory Authority of Ontario



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