OSC Statement of Priorities
The Ontario Securities Commission (OSC) has released a draft of its 2016-2017 statement of priorities for comment. Similar to previous years, the OSC's focus remains on changing demographics including seniors and millennials and the way in which the different demographics interact in the marketplace. Below is a summary of some of the initiatives which we think will have the most significant impact on the marketplace.
Implementation of a Best Interest Standard
- In 2016-2017, the OSC plans to conduct consultations with industry stakeholders on proposed regulatory reforms to National Instrument 31-103 to create a best interest standard
- Following stakeholder consultations, it will make recommendations to the Commission and develop an implementation plan for the reforms
- The best interest standard has been contemplated by the OSC for a few years and it will have a tremendous impact on investor-client relations
Focus on Seniors and Vulnerable Investors
- A mainstay of the OSC Statement of Priorities, the OSC plans to improve outreach and education in respect of seniors and vulnerable investors
- It will provide status updates on the OSC's activities in relation to seniors and on the OSC's work to improve risk profiling used in retail investment advice
Assess the Impact of CRM2 and POS Amendments
- Will conduct a post-implementation study of the impact CRM2 and Point of Sale amendments
Disclosure of Corporate Governance Practices
- A review will take place of all TSX-listed issuers to ensure that they are complying with the new disclosure requirements to disclose how many women are on their Boards
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