OSC Investment Management Division Annual Summary Report

The Report is intended as a resource for investment fund managers, advisers, entities who perform services on their behalf and other stakeholders, including investors.

"This report provides insight into the trends and regulatory developments that are influencing the sector, from the continued growth of ETFs and alternative investment products to emerging considerations related to crypto assets and evolving investor needs," said Raymond Chan, the OSC's Senior Vice President of Investment Management. "Through risk-based oversight, data-informed decision-making and ongoing stakeholder engagement, we are working to ensure Ontario's regulatory regime remains responsive to market developments and continues to foster fair, efficient and competitive capital markets."

Highlights from the Investment Management division include:

• Significant growth in the exchange-traded fund (ETF) market reflects continued investor demand for low-cost, transparent and innovative investment products. Ongoing policy work related to ETFs includes initiatives aimed at investor access to foreign ETFs, and monitoring emerging risks and developments in this area to maintain appropriate investor protection safeguards.
• Policy initiatives aimed at modernizing the regulatory framework for investment funds that address key risks facing investors. This work includes proposals to introduce a more streamlined Fund Report designed to improve the usefulness of disclosure for investors.
• Continued work on liquidity risk management to ensure funds are better equipped to manage market stress and meet investor redemption requests.
• Enhancements to the Investment Fund Survey, a key source of data for regulatory oversight. The survey now includes information from fund managers that are not registered in Ontario, providing a more comprehensive view of the Canadian investment funds landscape.

The full report can be found on the OSC website.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at www.osc.ca.

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For Media Inquiries:

Julia K. Mackenzie media_inquiries@osc.gov.on.ca

For Investor and Industry Inquiries:

1-877-785-1555 (Toll Free) inquiries@osc.gov.on.ca

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