Investor protection is still a top priority for the Ontario Securities Commission (OSC), but the effects of geopolitics, shifting global trade arrangements and sharply different regulatory approaches are increasingly weighing on its agenda — intensifying the urgency of facilitating economic growth and capital formation.
On Friday, the OSC published its draft statement of priorities for the coming year (fiscal 2027, which starts March 31, 2026), setting out the regulator’s plans for the year ahead, including specific policy initiatives it will be aiming to advance.
This year, the regulator is highlighting the growing relevance of global affairs for local regulatory policy.
“Developments such as the introduction of tariffs and deregulation in the U.S. are challenging market participants and contributing to significant market uncertainty,” the paper said. “These shifts underscore the need for agility, timely and strategic responsiveness, and a sharpened focus on competitiveness.”
Indeed, the OSC stressed that, “Enhancing competitiveness in Ontario and Canada is a top priority, and the urgency surrounding it calls for coordinated action and shared purpose.”
To that end, it noted that policymakers must “consider opportunities to enhance harmonization across jurisdictions, reduce interprovincial trade barriers, and right-size regulation to support proportionality, effectiveness and market responsiveness. These efforts will help unlock economic potential, reduce friction, and strengthen Canada’s position in the global marketplace.”
In particular, rising trade tensions are a significant new consideration for regulators, impacting both corporate finances and capital raising activities. Next year’s review of the Canada-United States-Mexico Agreement on trade will bring added uncertainty that may negatively impact investment, it noted.
“For regulators, this creates challenges in maintaining fair, efficient and competitive markets when issuers face headwinds in raising capital and investors encounter reduced opportunities,” it said.
Against that backdrop, the OSC will be working on a number of initiatives that aim to enhance competitiveness and capital raising, including harmonizing prospectus exemptions, streamlining disclosure requirements, testing semi-annual reporting for venture issuers, reforming disclosure access requirements and ETF regulation, among other initiatives.
“The rapidly evolving global political and economic environment underscores the need for the OSC to demonstrate agility, timely and strategic responsiveness, and a sharpened focus on competitiveness,” said Grant Vingoe, CEO of the OSC, in a release.
“The OSC has already undertaken measures to support businesses at all stages across the capital markets continuum,” he added. “We will continue to identify opportunities to further support capital formation and enhance competitiveness, while maintaining investor protections.”
Indeed, the regulator’s also continuing to grapple with a number of retail investor protection issues, including its ongoing review of sales practices at the bank-owned dealers.
The OSC said it’s still working through compliance reviews to understand how reps and investors are impacted by the bank dealers’ practices; and to understand the firms’ internal controls over conflicts of interest, compensation and sales incentives.
“This work will inform our consideration of whether further action is required, including whether additional rules or guidance are necessary in the use of titles and how dealing representatives hold themselves out to investors,” it said.
At the same time, the OSC said that it will continue to evaluate the impact of the client-focused reforms (CFRs), including whether its know-your-product (KYP) provisions are resulting in limited product shelves.
“We will also consider whether any additional policy measures should be explored,” it said.
It also pledged to finalize reforms to the investor redress system, including the introduction of binding authority for the Ombudsman for Banking Services and Investments (OBSI), and adopting its new disgorgement mechanism.
On enforcement, the OSC reiterated its intention to take a tougher approach — increasingly bringing criminal charges in fraud cases, actively disrupting online investment scams, and taking action more quickly.
In particular, it also said it will “prioritize cases involving fraud, securities violations involving crypto assets, abuse/insider trading/tipping, recidivists, unscrupulous property investment schemes, misleading financial and non-financial disclosures, misleading and false promotional statements and registrant misconduct.”
The draft priorities are out for comment until Jan. 12, 2026. The regulator’s final priorities will be completed in the spring.