The Ontario Securities Commission (OSC) recently published its
Statement of Priorities for 2016-2017. The Statement of Priorities
is published annually and offers stakeholders a glimpse into the
OSC's goals and priorities for the upcoming year, including
where the OSC intends to focus key resources and actions. A
draft of the Statement of Priorities was published on March 10,
2016, in response to which the OSC received 23 comment letters
that, with some exceptions, were broadly supportive of the
OSC's overall direction.
Primary Initiatives and Focus Areas for 2016-2017
Some of the notable initiatives and focus areas for 2016-2017
Enhancing Advisor/Client Relationship. Targeted
reforms, including amendments to NI 31-103 – Registration
Requirements, Exemptions and Ongoing Registrant Obligations, and
the introduction of a Best Interest Standard (BIS) to enhance the
advisor/client relationship, by publishing and conducting
consultations on proposed regulatory provisions. Notwithstanding
mixed feedback on this initiative, the OSC indicated that it
continues to believe these measures to enhance the advisor/client
relationship should be top priorities.
Mutual Fund Compensation. Addressing
compensation arrangements in mutual funds by (i) communicating a
policy direction on embedded commissions and other types of
compensation arrangements; and (ii) developing regulatory proposals
that address conflicts of interest created by compensation
arrangements related to investment funds.
Shareholder Democracy Matters. Monitoring
developments in respect of shareholder democracy issues such as
"say-on-pay" and proxy voting to determine an appropriate
Exempt Market Oversight. Increasing oversight of the
exempt market by (i) overseeing market participants relying on the
expanded capital raising exemptions in Ontario (due to the recent
addition of and changes to a number of prospectus exemptions)
through a risk-based supervision program for issuers, registrants
and portals; and (ii) collecting and analyzing data on the use of
capital market exemptions in Ontario to assess how the exemptions
are being used to further capital formation.
Fixed Income Market Oversight. Enhancing oversight of
the fixed income market by (i) implementing public transparency of
fixed income trading data (in particular corporate debt); (ii)
monitoring fixed income trading data to assess the impact of
transparency; and (iii) conducting a comprehensive review of
dealers' allocation practices for new debt issues.
Systemic Risk Oversight and OTC Derivatives Regulatory
Regime. Advancing the OSC's systemic risk oversight
and over-the-counter (OTC) derivatives regulatory regime by working
with other regulatory agencies to monitor trends and risks across
various market segments and participants, including equities, fixed
income, OTC derivatives, clearing agencies and derivative
Industry Cybersecurity Oversight. Enhancing
oversight of industry cybersecurity preparedness by (i) improving
collaboration and communication with market participants on
cybersecurity issues; (ii) assessing the level of market
participant cybersecurity resilience, including measures for
protection of personal investor data; and (iii) improving market
participants' understanding of OSC cybersecurity oversight
activities, including providing guidance on expectations for market
participants' cybersecurity preparedness.
The Statement of Priorities and the initiatives listed above
will serve as the guide for the OSC's operations in 2016-2017.
The full Statement of Priorities is available on the OSC's
The content of this article does not constitute legal advice
and should not be relied on in that way. Specific advice should be
sought about your specific circumstances.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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