TORONTO, June 18,
2024 /CNW/ - The Investor Advisory Panel (the IAP)
today released its 2023 Annual Report summarizing its activities,
submissions, consultations, and meetings.
In 2023, the IAP focused on the importance of securities
regulation continuing to prioritize investor protection in a way
that effectively keeps pace with a rapidly shifting environment for
retail investors.
The IAP looked at risks and opportunities for retail investors
from the increasing digitalization of financial services, such as
reliance on social media influencers for investing advice, the use
of digital engagement practices by trading platforms, and the use
of artificial intelligence (AI) by fraudsters including deepfakes.
The IAP also considered the rapid expansion of alternative assets
available to retail investors, such as crypto assets
and privately placed alternative assets.
"The IAP reflects with great pride on our work in 2023 and looks
forward in the year ahead to continuing to encourage the OSC to
prioritize investor protection as the cornerstone of its
multi-pronged mandate," said IAP Chair Ilana Singer. "We remain committed to bringing
forward issues and perspectives that will advance investor
protection in Ontario, improve
investor outcomes and enhance the investor experience."
The IAP's advice has focused on approaches to protect investors
that are responsive to the increasing digitalization of financial
services and that are informed by similar trends in other sectors
and jurisdictions (domestically and internationally) and
regulators' responses to them. In particular, the IAP reiterated
its strong support for what it considers to be key opportunities to
enhance investor protection, including:
- evaluating the types of advice that could benefit
do-it-yourself investors given the steady increase in the number of
investors who trade on Order-Execution-Only platforms;
- conducting a compliance review of finfluencers to determine
whether measures are needed to regulate their conduct;
- assessing the effect of the Client Focused Reforms on investors
and measuring whether they are attaining their desired
outcomes;
- continuing to strengthen oversight of crypto
trading platforms and focusing future efforts on addressing
investors' ease of access to alternative assets which are
speculative and high-risk and strengthening oversight of those who
provide such access;
- bolstering consumer awareness of fraud risks and
continuing to collaborate with peer regulators and agencies to
address the evolving fraud landscape and impact on
vulnerable investors; and
- ensuring that any uses of the Designated Fund be seen to
directly benefit investors and be assessed through an investor
protection lens.
The IAP has also long regarded consumer dispute resolution as a
critically important issue. The IAP commends securities regulators
for their leadership in developing a binding authority proposal for
the Ombudsman for Banking Services and Investments (OBSI) through a
framework that is accessible, fair and efficient.
About the IAP
Comprised of up to nine members, the IAP is an advisory
committee to the Ontario Securities Commission that solicits and
represents the views of retail investors on the Commission's policy
and rule-making initiatives. Members of the IAP are appointed for
terms of up to two years, with possible reappointment for one
additional term. See the 2023 Annual Report for biographies of IAP
members.
Follow us on X
Follow us on
Linkedin
SOURCE Ontario Securities Commission