To deliver strong investor protection, the OSC will publish updates to define a best-interest standard, as well as targeted reforms
The Ontario Securities Commission (OSC) has published its 2017-2018 Statement of Priorities, setting out the areas where it will focus over the fiscal year ending March 31. It has listed fifteen priorities, which include efforts toward investor protection; effective compliance and enforcement; responsive regulation; improved oversight for financial stability; and changes to its operations.
To deliver strong investor protection, the OSC will publish updates to define a best-interest standard, as well as targeted reforms. It is also working on defining the regulatory actions needed to address potential issues with embedded commissions.
The Ombudsman for Banking Services and Investments (OBSI) is also a point of focus, as the regulator said it will work with the OBSI Joint Regulators Committee to develop a response to a recommendation on binding decisions.
The commission will also pursue “timely and impactful enforcement cases involving serious securities laws violations” through efforts such as promotion of its whistleblower program, increasing its use of technology, and streamlining investigative processes. At the same time, it aims to improve the deterrent impact of its collection process by making it more visible and active.
With regards to responsive regulation, the OSC said it will explore ways to reduce the regulatory burden for traditional firms, including streamlined rules for smaller reporting issuers; reduced ongoing disclosure requirements; and identifying ways to improve electronic delivery of documents.
Developments in fintech regulation will continue to be collaborative. The regulator aims to continue getting input from industry players and its Fintech Advisory Committee, as well as the Canadian Securities Administrators (CSA) and regulators in the UK and Australia. It is also planning to participate in the recently announced CSA Regulatory Sandbox, which aims to let firms test new products without full regulatory approval while still providing investor protection.
Adding to its draft list of priorities, the OSC said it would work to implement the orderly transfer of syndicated mortgage investment oversight from the Financial Services Commission of Ontario. This new priority follows plans the Ontario government announced in April, responding to concerns raised about the current regulatory regime.
Cybersecurity resilience is also in focus as the regulator cites risks from “increased [exposure to breaches due to] reliance on technology” and the “increase in the number and sophistication of cyber-attacks.” The OSC said it will keep promoting and supporting market participants’ efforts to improve their defenses and responses to cyber-attacks.
Citing opportunities to enhance investor protection, foster efficient rulemaking, and promote globally competitive markets in Canada, the commission is also prioritizing the nationally planned transition to the Capital Markets Regulatory Authority (CMRA).
“The OSC is working with the Ontario government and the OSC’s counterparts in other participating jurisdictions to develop a harmonized regulatory approach and seamless transition to the CMRA,” it said.
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To deliver strong investor protection, the OSC will publish updates to define a best-interest standard, as well as targeted reforms. It is also working on defining the regulatory actions needed to address potential issues with embedded commissions.
The Ombudsman for Banking Services and Investments (OBSI) is also a point of focus, as the regulator said it will work with the OBSI Joint Regulators Committee to develop a response to a recommendation on binding decisions.
The commission will also pursue “timely and impactful enforcement cases involving serious securities laws violations” through efforts such as promotion of its whistleblower program, increasing its use of technology, and streamlining investigative processes. At the same time, it aims to improve the deterrent impact of its collection process by making it more visible and active.
With regards to responsive regulation, the OSC said it will explore ways to reduce the regulatory burden for traditional firms, including streamlined rules for smaller reporting issuers; reduced ongoing disclosure requirements; and identifying ways to improve electronic delivery of documents.
Developments in fintech regulation will continue to be collaborative. The regulator aims to continue getting input from industry players and its Fintech Advisory Committee, as well as the Canadian Securities Administrators (CSA) and regulators in the UK and Australia. It is also planning to participate in the recently announced CSA Regulatory Sandbox, which aims to let firms test new products without full regulatory approval while still providing investor protection.
Adding to its draft list of priorities, the OSC said it would work to implement the orderly transfer of syndicated mortgage investment oversight from the Financial Services Commission of Ontario. This new priority follows plans the Ontario government announced in April, responding to concerns raised about the current regulatory regime.
Cybersecurity resilience is also in focus as the regulator cites risks from “increased [exposure to breaches due to] reliance on technology” and the “increase in the number and sophistication of cyber-attacks.” The OSC said it will keep promoting and supporting market participants’ efforts to improve their defenses and responses to cyber-attacks.
Citing opportunities to enhance investor protection, foster efficient rulemaking, and promote globally competitive markets in Canada, the commission is also prioritizing the nationally planned transition to the Capital Markets Regulatory Authority (CMRA).
“The OSC is working with the Ontario government and the OSC’s counterparts in other participating jurisdictions to develop a harmonized regulatory approach and seamless transition to the CMRA,” it said.
For more of Wealth Professional's latest industry news, click here.
Related stories:
Advisor group slams OSC priorities
Advisory panel responds to OSC statement
