OSC calls for feedback on its 2021-2022 priorities

The Ontario Securities Commission (OSC) has published its draft 2021-2022 statement of priorities for comment. Stakeholders are invited to provide written comments on the draft within 30 days, before December 16, 2020.

The OSC says the document reflects its current views and priority actions that the OSC will take in 2021 and 2022 to address each of its stated goals and related priorities. OSC says it will adjust these priorities as necessary to respond to the impact of the coronavirus pandemic and to accommodate changes or recommendations made by the Ontario capital markets modernization taskforce. The OSC’s priorities will be finalized and delivered to the Ontario Minister of Finance before June 30, 2021.

Client focused reforms

On its list of priorities, the OSC says it will continue the implementation of client focused reforms, will continue consultation on the current self-regulatory organization (SRO) framework, will implement mutual fund embedded commissions policies and formulate a regulatory response to deferred sales charges in the industry. It also plans to engage with fintech companies to meet its stated innovation goals and plans to complete actions identified in the OSC’s burden reduction plan.

In discussing the COVID-19 pandemic, the OSC says “regulators will need to remain vigilant about products promising higher returns.” It also says “other risks to investors could include issues around the quality of financial information, forward-looking information and debt servicing costs, as well as concerns about further growth in the level of corporate debt.” (In discussing some of the systemic risks it intends to address, the OSC says it also plans to design and implement enhanced data collection to monitor vulnerabilities associated with the use of leverage in the asset management industry.) It also says the final capital markets modernization taskforce final report, expected by the end of 2020, could result in significant changes to the Securities Act.

In a statement released to announce the beginning of the comment period, the OSC says “the document sets out the priority initiatives the OSC will pursue in support of its four strategic goals, which are to promote confidence in Ontario’s capital markets, reduce regulatory burden, facilitate financial innovation and strengthen the OSC’s organizational foundation.”