The Ontario Securities Commission (OSC) has published its 2021 – 2022 annual report after filing the report with the Ontario legislature. Calling the year one of transformation for the OSC, the report details the regulator’s activities and its extensive list of priorities for the coming year.
All told, the OSC reviewed 702 public company prospectuses during the year, up 22 per cent, and reviewed another 302 prospectuses from investment funds and structured products. Registration numbers rose 14 per cent during the year. The OSC’s inquiries and contact centre also received more than 10,300 inquiries and complaints during the year.
Record number of enforcement cases
The regulator’s enforcement branch meanwhile assessed a record number of 984 cases, up 22 per cent, and issued 35 administrative penalties totalling $17.9-million. Among the initiatives listed in the 143-page document, the OSC highlights the discontinuation of deferred sales charges for mutual funds, the publication of new rules expanding investor protection for seniors and its work to bring client focused reforms for the investment industry into force.
The commission also approved 83 environmental, social and governance (ESG) funds during the year. These funds made up 24 per cent of all new funds created. It registered four new crypto asset trading platforms, saying it has another 20 applications under review in this area. “The OSC has followed through with actions against four non-compliant international firms,” they write. “We are monitoring these platforms for potentially misleading claims, high-pressure sales tactics and the use of gambling-style promotions that may encourage excessive risk taking by retail investors.”
The OSC’s chair and CEO, Grant Vingoe says operational volumes for filing, reviews and applications were unprecedented during the year. He adds that research studies on the COVID-19 pandemic have also been important resources in shaping the regulator’s approach to emerging trends and public education about investor risks. Burden reduction is now fully integrated into the OSC’s policy work and the regulator’s Innovation Office also became fully operational during the year with a mandate to support innovative businesses with flexible approaches to meeting regulatory requirements.
Structural and governance changes
Following the proclamation of the Securities Commission Act, 2021 in April 2022, the OSC also underwent structural and governance changes including moves to split the chair and CEO role into two distinct roles. It also appointed a chief adjudicator to oversee the new Capital Markets Tribunal.
All told, the OSC says excess of revenue over expenses in fiscal 2022 amounted to $24.1 million. Revenue totalled $160.7 million, reflecting an increase of $22.2 million or 16 per cent when compared to the previous year.
