Investment funds in Ontario expand with sustainable finance options and evolving regulatory focus
The Ontario Securities Commission (OSC) has published its Summary Report for Investment Fund and Structured Product Issuers, offering an overview of the Investment Management division's key activities for fiscal year 2023-2024.
This resource aims to assist investment fund managers, service providers, and other stakeholders, including investors, by detailing significant regulatory developments and trends in the industry.
According to Raymond Chan, senior vice president of Investment Management, “The investment management industry is a critical and growing part of Ontario's capital markets.”
Chan emphasized that investor needs continue to evolve, with the division observing a steady increase in offerings linked to sustainable finance and emerging asset classes.
The report highlights several operational aspects of the Investment Management division, formerly known as the Investment Funds and Structured Products Branch.
Over the past year, the volume of prospectus reviews and exemptive relief applications has remained consistent, while continuous disclosure reviews have continued to rise.
This increase reflects a concentrated effort to promote fair disclosure practices, ensuring investors have access to accurate information. Areas of focus for these reviews included environmental, social, and governance (ESG) funds, as well as assessments of marketing materials and yield disclosures.
In addition to operational efforts, the division pursued regulatory policy initiatives that underscore the OSC’s commitment to easing regulatory burdens without compromising investor protection.
By developing rule proposals and amendments, the division aims to streamline regulations, promoting an efficient regulatory environment.
The report also addresses several emerging issues impacting the investment funds industry.
Notably, the division oversaw the launch of SEDAR+, an updated system for electronic document filing and retrieval, and responded to the cessation of the Canadian Dollar Offered Rate.
Furthermore, the Investment Fund Survey, an essential tool for gathering data on industry trends, underwent updates to align with other regulatory filings and broaden the range of data collected.
