It’s no surprise that regulatory burden reduction is one of the OSC’s top priorities for 2019-20, as outlined in its proposed Statement of Priorities released on March 28.
Regulatory Burden Reduction: In addition to further engagement with and reporting to stakeholders on this subject, the OSC’s planned actions and outcomes in the coming year include:
- Revising and modernizing National Instrument 33-109 Registration Information;
- Implementing the plan set out in the Canadian Securities Administrators (CSA) Staff Notice 81-329 Reducing Regulatory Burden for Investment Fund Issuers;
- Greater use of creative regulatory approaches (e.g. limited registration and other exemptive relief) to provide an environment for innovators to test their products, services and applications with a reduction in time-to-market for novel fintech businesses while maintaining appropriate investor safeguards; and
- Initiating an overhaul of the OSC’s website to enhance searchability, usability, efficiency and accessibility.
The Statement of Priorities also identifies a number of other regulatory burden reduction initiatives that are planned or underway with the CSA, such as identifying opportunities to enhance electronic delivery of documents and identifying an alternative, streamlined offering regime for reporting issuers.
Additional Priorities: The Statement of Priorities also indicates that the OSC will prioritize further work on initiatives such as the following:
- The OSC will work with its CSA colleagues to develop and publish revised proposals relating to client-focused reforms to the registrant regulatory framework and mutual fund embedded commissions. (See our discussion of the earlier proposals in our June 2018 bulletin and our September 2018 bulletin, respectively.)
- The OSC will follow up on its March 2018 Seniors Strategy by publishing a staff notice and proposed rule amendments to address financial exploitation of seniors and vulnerable investors. (See our discussion of the OSC’s Seniors Strategy in our March 2018 bulletin.)
- The OSC will continue working on its regulatory framework for over-the-counter (OTC) derivatives and will develop a compliance review program for derivatives markets participants. (See our discussion of the CSA’s 2018 proposed registration framework for OTC derivatives in our April 2018 bulletin and proposed OTC derivatives business conduct rules in our June 2018 bulletin, respectively.)