The Canadian Securities Administrators (CSA) has released its annual Year in Review report, which seeks to update on its work to promote capital market innovation, safeguard investors, disrupt and discourage bad actors, and hold those breaching securities law accountable.
“The progress we made in the past year, as outlined in our Year in Review, is a testament to CSA members’ collaboration to strengthen Canada’s capital markets and introduce measures to boost competitiveness,” said Stan Magidson, the CSA’s chair and the Alberta Securities Commission’s chair and chief executive officer, in a news release.
The report noted that the CSA:
- issued 1,011 investor alerts, cautions, and warnings – over 75 percent of which concerned crypto assets – to help protect the public
- reached over 4.5 million Canadians via its “Check Registration” and “Spot the Red Flags of Fraud” investor education campaigns
- permanently prohibited 54 companies and individuals from participating in the capital markets after enforcement proceedings
- took enforcement actions in 20 crypto-related matters to help promote capital market integrity
- issued 57 publications on the final adoption of rule changes, consultations, blanket orders, and guidance regarding policy developments
- hosted the representatives of 155 organizations at the CSA Collaboratory’s inaugural data portability webinar to help spur capital market innovation
“We’ve demonstrated that effective regulation can be both principled and adaptable to changing geopolitical and market conditions,” Magidson said in the CSA’s news release.
The report, available in English and French, aims to address the CSA’s progress relating to its 2022–25 Business Plan’s six strategic goals to:
- Strengthen the capital markets’ regulatory system
- Optimize investors’ ability to contribute to policymaking and expand investor education outreach
- Better protect investors by enhancing their ability to obtain redress and strengthening the advisor-client relationship
- Tackle emerging market issues and trends
- Deliver smart and responsive regulation safeguarding investors while reducing regulatory burden
- Promote integrity and financial stability via effective market oversight
First goal
In its report, the CSA shared that it:
- announced its plans in late November 2024 to consider streamlining routine registration applications by delegating authority to the Canadian Investment Regulatory Organization
- saw several CSA jurisdictions complete this delegation last April
- attained a centralized registration process that decreased administrative burden, increased harmonization, and promoted participation in Canada’s capital markets
Second goal
The CSA’s report said it:
- established its national “Spot the Red Flags of Fraud” campaign last March to help Canadians see the signs of online investment fraud
- saw the campaign, which featured a video including fraudsters’ actual language in the script and listing warning signs, reach more than six million views over 60 days
Third goal
The CSA explained that it:
- suggested amendments last June to ban using chargebacks when distributing some reporting issuer investment fund securities
- strove for its proposal to improve transparency, investor protection, and confidence in the advisory relationship
Fourth goal
The CSA noted that it:
- launched its Collaboratory – an initiative seeking to enable financial innovators and regulators to work together, experiment with new ideas, and gain insights on the effects of emerging technologies and potential regulatory changes – last February
- urged market participants to submit proposals for testing
Fifth goal
In its report, the CSA said it:
- introduced timely and necessary measures in April and May to make it easier and cheaper for businesses to raise capital and grow in Canada
- took steps to help the country’s capital markets be competitive, resilient, and attractive to issuers and investors despite geopolitical uncertainty worldwide
Sixth goal
The CSA stated that it:
- implemented National Instrument 93-101 Derivatives: Business Conduct, which sought to harmonize Canada’s regulatory framework for business conduct in over-the-counter derivatives markets – last September
- developed the rule after extensive consultation