Canada’s securities regulators say that they are still committed to adopting an independent dispute resolution framework with binding authority — they’re also still contemplating policy action to deal with the issue of advisor chargebacks.
In its latest annual review report, summing up the regulators’ work over the past year, the Canadian Securities Administrators (CSA) are also signalling their continued intention to address a couple of key investor protection issues — their long-running effort to strengthen the Ombudsman for Banking Services and Investments (OBSI) through the addition of binding authority, and measures to address the conflict of interest posed by advisor chargebacks.
Investor advocates and independent reviewers alike have long called for OBSI to have greater power to enforce its investor compensation recommendations — most recently the latest independent review issued in July, which echoed recommendations that were first issued in a 2011 review.
The CSA’s latest proposals, issued for comment in July 2025, set out a proposed mechanism and the regulator’s plans for overseeing a dispute resolution service with binding authority.
In today’s report, the CSA said that it remains, “fully committed” to finalizing that framework and “enhancing protection for seniors and vulnerable investors.”
At the same time, the regulators also reiterated their intention to take policy action to prohibit the use of advisor chargebacks for investment funds that are distributed under a prospectus.
The CSA proposed reforms in this area back in June 2025 that, “aim to address the inherent conflict of interest between the dealing representative and the client” in these arrangements — given that chargebacks give reps a strong incentive to keep their clients invested in funds until the chargeback period has expired, enabling the rep to keep their upfront sales commissions.
“The CSA has reviewed the comments received on the proposed amendments and is evaluating next steps,” it said.
Alongside these issues, the report also highlighted the regulators’ recent efforts to combat the proliferation of online investment scams.
In particular, the report noted that the CSA’s new program to seek out and quickly shut down suspected online frauds resulted in the deactivation of 11,700 fraudulent investment platforms and crypto scams.
“This new project uses online fraud detection technology and early intervention to prevent harm on a larger scale,” the report said — noting that many of these sites were taken down within 24 hours of being spotted by regulators.
Looking ahead, the CSA said that its focus, “will remain on helping investors identify risks earlier, supporting more responsible online financial content and working with partners to strengthen Canada’s broader response to investment fraud.”
The report also noted that financial stability risks have become a bigger issue for securities regulators, amid ongoing trade conflict, elevated geopolitical risk and the systemic risks posed by the rapid growth of AI investment and the rapid advances in AI capabilities.
“As market conditions continue to evolve, we will maintain a strong focus on monitoring systemic risks across Canada’s capital markets. This includes tracking financial vulnerabilities, market structure developments and potential impacts of emerging trends, including those associated with technological innovation,” the report said.
On the policy front, the CSA also pointed to its ongoing efforts to modernize the regulation of public companies, support capital raising and facilitate innovation.
To that end, it noted that a recent consultation of proposals to enhance competitiveness, “will inform the next phase of reforms to support access to capital, improve competitiveness and ensure our regulatory regime is appropriately calibrated and current.”