In the advisory area, the OSC plans to build on progress made under client-focused reforms regarding conflicts of interest, product knowledge and appropriate disclosure.
Speaking at an event organized on May 3 by the CD Howe Institute in Toronto, Grant Vingoe, CEO of the OSC, said he was still concerned about the quality of advice provided to certain investors, the competence of certain advisors, and by the narrowing of product selection, particularly on the part of banks.
“Over time, the evolution of customer-focused reforms will lead to another step that will take into account competitive factors to ensure the availability of a reasonable range of products offered to Canadians, including products from independent manufacturers », Estimates Grant Vingoe.
He added that the advice offered in bank branches must be “more adequate and have more elements of financial planning”, and be accessible to people “even if they are not rich and they do not receive the most high level of fiduciary advice”.
In November 2021, Ontario Finance Minister Peter Bethlenfalvy asked the OSC to investigate concerns about banks limiting the range of products available in branches to proprietary funds. The OSC submitted its report less than four months later, but no action was announced following this investigation.
In December 2023, the Federal Ministry of Finance asked, as part of a competition-focused consultation, whether large banks should be required or encouraged to offer third-party products and services.
The OSC’s strategic plan also outlined a shift in the agency’s approach to retail investors.
“We will place greater emphasis on self-directed investors to ensure they have the tools, information and choice they need to support their independent investment activities,” explains the OSC in its plan.
“At the same time, we understand the value of different advice channels and will support initiatives that improve the investor experience when receiving advice, whether through a traditional broker or an account trustee. »
When it comes to enforcement, the OSC says it intends to take on more difficult cases and seek greater attention for its work.
“We will bring cases that we may not win, but it will send a message,” says Grant Vingoe.
“The widespread publication of high-profile cases that highlight the advanced enforcement capabilities of the OSC remains a powerful deterrent against future misconduct and will be one of our key law enforcement strategies,” assures the regulatory authority in its plan.
The regulator is looking for an executive vice president for enforcement following the departure earlier this year of Jeff Kehoe, director of enforcement for many years.
The OSC has assured that it will work harder to collect penalties from wrongdoers and return more money to wronged investors. “We will seek new tools and authorities to address wrongdoing across the compliance-enforcement continuum,” the plan states.
Regarding capital formation, the OSC is looking to provide increased support to early-stage companies raising capital, through revised or new exemptions, which may be implemented in the near term. The regulator said it would consider expanding options for risk-averse investors to participate in these types of speculative ventures, which also goes in the direction of improving the experience of the investor.
In March, securities regulators in Alberta and Saskatchewan permanently adopted rules that allow investors who do not have the financial resources to be considered accredited investors to still benefit from an exemption based on their financial knowledge.
The OSC also aims to address the needs of underserved communities, such as immigrants and vulnerable investors.
“By placing a more deliberate and targeted emphasis on the specific needs of different types of investors, we can make it easier for them to engage in our markets and help them navigate an increasingly complex environment,” the plan states.
