The provincial securities regulator has published its first report on potential innovations for capital markets
It’s been 18 months since the Ontario Securities Commission (OSC) invited businesses to experiment with innovations for the province’s capital markets.
The regulator’s TestLab enables focused, group testing of potential innovative solutions and modernized regulations that can, for example, make investment products more accessible or enhance client information and relationships.
"The OSC is committed to promoting innovation and driving progress in our capital markets," said Grant Vingoe, CEO of the OSC. "We created OSC TestLab to provide an environment for innovators, capital market participants and the OSC to test new approaches and technologies that can benefit Ontario's businesses and investors."
The OSC has now published its first report on the TestLab, highlighting challenges and opportunities for businesses and regulatory technology (RegTech) providers trying to innovate in Ontario’s capital markets.
Collaborative approach
Firms were invited to take part in November 2021 and seven businesses tested Regtechs with more than 100 testers in the second half of last year.
"Historically, regulators have used a top-down approach to regulation. Today, the OSC is modernizing its method by engaging with collaborative networks to determine what can be done better, together." added Vingoe.
The report highlights four key ways that the OSC can support RegTech innovation including more regular meetings, events, and information sessions to share knowledge across the industry; making regulation more accessible; broader testing of potential innovations; and shaping and sharing RegTech standards nationally and globally.
"The first test has ended, but OSC TestLab is just getting started," said Pat Chaukos, Director of the OSC Innovation Office. "Our goal is to champion beneficial innovation in our capital markets, but we can't do it alone. We strongly encourage everyone interested in exploring and trying new solutions to participate in future tests."
