In OSC Staff Notice 33-758 2025 Examination Priorities for the Registration, Inspections and Examinations Division (the Notice), the Registration, Inspections and Examinations Division of the Ontario Securities Commission (RIE) set out its examination priorities for the upcoming year.
Examination initiatives will include the following topics:
- Artificial Intelligence (AI). The RIE will review the use of AI within registrants' operations and how they are responding to the CSA Staff Notice and Consultation 11-348 Applicability of Canadian Securities Laws and the use of Artificial Intelligence Systems in Capital Markets. For additional information on this topic, please see BLG's article "Firms that use AI systems for any purpose: It's time to make a to-do list".
- Cybersecurity. The division will examine the policies and procedures of registrants relating to cybersecurity incidents. RIE believes these examinations may identify areas of cybersecurity risks and expects to provide further guidance in this area.
- Financial Institution Sales Practices Examination. RIE, together with the Canadian Investment Regulatory Organization (CIRO), will continue looking into sales practices within Canadian bank branches to determine if any further work is needed.
- Exempt Market Dealers. RIE (and the OSC's Corporate Finance Division) will examine exempt market dealers that distribute securities under the offering memorandum exemption. The reviews will include considering the know-your-product practices of registrants when distributing securities of issuers that are in default of their reporting obligations under the exemption. Exempt market dealers subject to the reach out may wish to speak proactively to staff in the event this subject is not applicable to the registrant.
It is noted that these priorities are not exhaustive, and that RIE will proactively respond to new and emerging risks, evolving products/service offerings, market events and investor concerns. The division will continue to review high impact firms and high-risk firms, conduct pre-registration examinations of firms and review participation fee filings and excess working capital filings.
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.
