The Ontario Securities Commission (OSC) has published the 2025 annual report of its registration, inspections, and examinations (RIE) division, which discusses significant matters affecting registration, compliance review results, and initiatives relevant to market participants.
The report focuses on registered firms and individuals under the OSC’s direct oversight function and covers the RIE division’s achievements in core operational activities, according to the OSC’s news release.
According to the news release, within the relevant period, the division:
- surveyed the sales environment at certain bank-owned mutual fund dealers, alongside the OSC’s behavioural insights team
- focused on know your customer (KYC), know your product (KYP), and suitability determinations in the second phase of the client-focused reforms sweeps
- reviewed the digital engagement practices of online dealers, advisers, and crypto asset trading platforms
- made multiple settlement agreements through its registrant conduct team
The annual report's release follows the RIE division’s publication of the inaugural edition of its examination priorities earlier this fiscal year.
“This was the year of change for RIE, as we orient ourselves towards the future as a modern, agile regulator committed to upholding compliance in the marketplace,” said Matthew Onyeaju – the OSC’s senior vice president, RIE – in the news release. “One element that hasn’t changed is our focus on assisting firms in meeting their regulatory requirements.”
In its news release, the OSC urged firms directly overseen by the Canadian Investment Regulatory Organization (CIRO) and other market participants to read the report for information and guidance potentially pertinent to them.
“The publication of our annual report provides staff the opportunity to share guidance in an effort to assist firms in establishing a strong compliance framework,” Onyeaju said in the OSC’s news release.
RIE annual report
According to the RIE division’s 2025 annual report, the division expanded its traditional registrant space to examine other regulated entities, including trade repositories, clearing agencies, exchanges, designated rating organizations, as well as conduct strategic, risk-based, and thematic reviews of CIRO members.
Onyeaju said the RIE division directly supported the objectives in the OSC’s strategic plan dated May 2024 to right-size regulation and consider how to optimally divide responsibilities among the OSC and other regulators.
Onyeaju added that the RIE division delegated some registration activities to CIRO and plans to coordinate closely with the organization to minimize possibly duplicative efforts that could result in unintentional burden.
In its examination priorities, the RIE division identified the following areas of strategic interest: the sales practices and culture within certain financial institutions, cybersecurity, artificial intelligence, and the exempt market.
The annual report touched upon the RIE division’s modernization efforts. The division is considering using new tools and technology to improve its examination process, including horizon scanning to better understand the marketplace and possible non-compliance or risk areas.
The RIE division expects to issue guidance and best practices, conduct topical registrant outreach sessions, and publish a report this fall, which will focus on its registrant conduct team’s efforts, cover certain conduct files, and discuss how registrants can avoid similar results.
The RIE division handles the registration and supervision of firms and individuals trading in or advising on securities or commodity futures, as well as firms managing investment funds in Ontario.