The Ontario Securities Commission (OSC) published the results of its first-ever experiment conducted by the OSC TestLab, discussing the results of focused, group testing of approaches and technologies designed to make product information more accessible and improve information sharing with clients to enhance those relationships.
“The report highlights the challenges and opportunities for businesses and regulatory technology (RegTech) providers trying to innovate in our capital markets,” they write in a statement about the report. “We created the 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,” adds Grant Vingoe, CEO of the OSC.
The test, held between June and December 2022, involved seven business and over 100 testers, including investment advisors and investors. “Testing also offered the OSC an opportunity to engage with participating businesses and gain insights into the opportunities and obstacles for RegTech innovation in Ontario,” they add.
“TestLab 2022 highlighted the significant and varied opportunities for RegTech solutions to support registrants and investors in Ontario’s capital markets,” the report states, adding that RegTech can empower investors with knowledge and engaging risk assessments. “RegTech is about more than compliance,” they continue. “It can drive efficiency, quality and variety in our capital markets.”
They add that RegTech development efforts face a range of challenges. Among the supportive measures the OSC’s lab recommends, they suggest making regulation more accessible by assessing opportunities to create machine-readable regulation to support automation. The report also encourages further testing, saying the next efforts will look different from the 2022 test.
