The Ontario Securities Commission (OSC)’s Investor Advisory Panel (IAP) has shared its 2024 annual report, which discusses the IAP’s meetings, consultations, submissions, and activities amid the complex and swiftly evolving environment that retail investors need to navigate.
Last year, retail investors faced more risks, uncertainties, and volatility and dealt with changes impacting the economy, financial markets, and regulatory landscape, according to a news release from the OSC.
“Given the growing complexity of the challenges that retail investors face and the dramatic shifts beyond our borders, the IAP believes its work to help bring the views of retail investors and an investor protection lens to OSC policy and rule-making initiatives is more important than ever,” said Jim Sinclair, IAP chair, in the news release.
In 2024, the IAP maintained its focus on the importance of securities regulation and investor protection and considered the risks, opportunities, issues, and policies relevant to retail investors, including the rising number of do-it-yourself (DIY) investors.
The IAP said it addressed:
- the need to provide investors with timely, accessible, reliable, and easy-to-understand information so that they know about any risks before making investment decisions
- investors’ interest in crypto assets and alternative assets
- the lack of transparency and lower investor protection among private markets
IAP advice in 2024
Last year, the IAP urged the OSC to pursue or keep pursuing potential opportunities to improve investors’ protection and their confidence in capital markets, according to the OSC’s news release. Specifically, the IAP recommended that the OSC:
- consider initiatives driving competition or offering non-tailored advice in the order-execution-only (OEO) channel
- evaluate the landscape of finfluencers to see whether further regulation will help ensure that they give quality information
- impose measures aiming to address harmful digital engagement practices among retail investors
- improve the information investors receive regarding competing investment products and services so that they can make educated investment decisions
- tackle the issues of improper sales practices and misleading titles
- establish a timely, accessible, fair, and efficient framework for the ombudsman for banking services and investments
- seek legislative amendments to empower it to enhance enforcement or otherwise equip itself with the tools, resources, capabilities, and powers needed for this purpose
- review its initiatives to advance capital formation through investor protection
- increase investor awareness of the OSC’s work to stabilize the financial system and reduce systemic risk
The IAP welcomed the OSC’s commitment in its strategic plan to speed up regulatory actions to anticipate emerging trends and the OSC’s efforts to work together with its domestic and international counterparts as it strives to fulfill its mandate.
“We will continue to focus on the evolving geopolitical landscape and the themes outlined in our annual report so as to be well-positioned to identify and advise the OSC on additional unexpected challenges that may arise for both retail investors and the capital markets,” Sinclair said in the OSC’s news release.
The IAP, an advisory committee of the OSC, seeks to represent retail investors’ views of the OSC’s policies and rule-making initiatives. The IAP has a maximum of nine members, who serve two-year terms with the possibility of reappointment for an additional term.