OSC lists final DSC rule, task force recommendations as 2021 priorties

By Greg Dalgetty | November 16, 2020 | Last updated on November 16, 2020
2 min read
Checking monthly activities and appointments at the office
© Elizabeth Crego / 123RF Stock Photo

The Ontario Securities Commission (OSC) is seeking comments on its draft statement of priorities for the 2021-2022 fiscal year.

The priorities are designed to align with the OSC’s four strategic goals: to promote confidence in Ontario’s capital markets, reduce regulatory burden, facilitate financial innovation and strengthen the OSC’s organizational foundation.

Notably, the OSC plans to finalize its regulatory response to the use of deferred sales charge (DSC) mutual funds in Ontario by publishing a final rule on DSC sales.

Last year, Ontario was the only province to resist the Canadian Securities Administrators’ (CSA) ban of DSC sales. In February of this year, the OSC announced it would limit the sales of DSC funds without banning the funds outright.

The OSC also plans to accommodate any changes that result from the Ontario Capital Markets Modernization Taskforce, which will publish its final recommendations to the Ontario government by the end of this year.

The task force has recommended sweeping changes at the OSC, such as expanding the regulator’s mandate and removing its adjudicative function.

On the investor protection front, the OSC plans to “strengthen investor redress through the Ombudsman for Banking Services and Investments (OBSI)” by providing an analysis of the task force’s proposal to give OBSI binding authority.

The OSC’s draft priorities also include a section on fostering inclusion and diversity.

The regulator intends to implement a strategy “to remove barriers to inclusion at the OSC,” in addition to taking actions outlined in the BlackNorth Initiative’s CEO Pledge in an effort to end anti-Black systemic racism, among other measures.

“The OSC is focused on building and sustaining diversity in our OSC community and ensuring that the employee experience is equitable and inclusive for everyone,” the draft priorities stated.

The OSC also plans to assist in the implementation of the CSA’s client-focused reforms (CFRs) by providing guidance on the regulatory reforms and publishing frequently asked questions about the CFRs.

For further details on the OSC’s priorities for 2021-2022, see the draft statement. Comments are due Dec. 16.

Greg Dalgetty