On April 3, 2014, the Ontario Securities Commission ("OSC") published for comment its annual Statement of Priorities, which sets out the actions the organization will take over the next year in respect of its administration of Ontario securities laws.
The OSC's Regulatory Goals for 2014-2015 are:
Deliver Strong Investor Protection. The OSC will (i) study the impacts of imposing a "best interest duty to investors" on investment dealers and advisors; (ii) look at how compensation models affect investment advisor behaviour and whether or not to place a cap on embedded fees; and (iii) introduce new disclosure requirements for mutual funds and ETFs.
Deliver Responsive Regulation. To ensure the OSC is delivering responsive regulation, it intends to (i) examine how technology has and will continue to affect the market and, in particular, the order protection rule; (ii) respond to stakeholders regarding greater access to the exempt market; (iii) examine ways to improve transparency in the market for fixed income securities; (iv) develop and propose rules requiring disclosure regarding the number of women on boards and in executive management; and (v) review feedback regarding proxy voting infrastructure and publish a report of its findings by December 2014.
Deliver Effective Enforcement and Compliance. The OSC will focus its enforcement efforts on cases involving fraud, manipulation and other serious securities related misconduct. Policy proposals may include no-enforcement action agreements, no-contest settlements and a credit for co-operation program with enhanced public disclosure of the credit granted for co-operating with the OSC.
Support and Promote Financial Stability. The OSC will work with international partners to develop and implement a strengthened regulatory regime for over-the-counter derivatives, and will partner with the Ontario, British Columbia and federal governments in the creation of a Co-Operative Capital Markets Regulator.
Run a Modern, Accountable and Efficient Organization. The OSC will look for ways to reduce the regulatory burden on market participants and ensure that its adjudicative processes are timely and transparent.
The OSC encourages interested parties to make written submissions on its draft Statement of Priorities by June 1, 2014.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
