The Ontario Securities Commission (OSC) has announced the publication of its annual summary report on key activities undertaken by its investment funds and structured products branch during the 2022-2023 fiscal year.
A resource for fund managers, in it, the OSC says investor protection remains a top priority for the branch, alongside communication and outreach activities. “Investor confidence in the asset management industry is even more critical during economic uncertainty. As a regulator, we must be agile and proactive in responding to emerging issues to ensure investors are protected,” they write.
“The asset management industry is very dynamic. Constant innovation is needed to compete, to break boundaries and to serve investors more effectively. We have continuously been working with the industry to bring new investment products and solutions to retail investors, with appropriate guardrails.”
The report, entitled Summary Report for Investment Fund and Structured Product Issuers, examines the OSC’s work related to funds that primarily hold crypto-assets and work around environmental, social and governance (ESG) disclosures. The Canadian Securities Administrators (CSA) has also announced that it is examining chargeback practices which will help determine if rule modernization is needed in the area to enhance investor protection.
According to the International Organization of Securities Commissions (IOSCO), Canada accounts for approximately seven per cent of conventional mutual funds counted by the organization, and approximately five per cent of the total net asset value of these funds. The OSC says as of March 31, 2023 investment funds in Canada had about $2.3-trillion in assets under management, while structured notes outstanding at the same time were worth approximately $30.4-billion. The total number of funds in Ontario increased by 59 during the year, down from the 144 funds which launched in the previous year. Two investment fund managers in the province exited the industry during the year, leaving 126 managers offering just over 4,500 publicly offered investment funds to investors.
