First OSC TestLab report highlights perspectives on RegTech in Ontario’s capital markets
For Immediate Release OSC
TORONTO – The Ontario Securities Commission (OSC) today published its first report on OSC TestLab, the regulator’s testing environment designed to promote innovation and modernize regulation in Ontario’s capital markets. In November 2021, businesses were invited to experiment with innovative solutions as part of focused, group testing.
TestLab’s inaugural test focused on novel solutions that can make product information more accessible, improve information sharing with clients and enhance registrant-client relationships. The report highlights challenges and opportunities for businesses and regulatory technology (RegTech) providers trying to innovate in our capital markets.
“The OSC is committed to promoting innovation and driving progress in our capital markets,” said Grant Vingoe, CEO of the OSC. “We created OSC TestLab to provide an environment for innovators, capital market participants and the OSC to test new approaches and technologies that can benefit Ontario’s businesses and investors.”
Between June and December 2022, seven businesses tested RegTech solutions with over 100 testers— including investment advisors and investors—to gain input and feedback in real time to help improve their products and services. Testing also offered the OSC an opportunity to engage with participating businesses and gain insights into the opportunities and obstacles for RegTech innovation in Ontario.
“Historically, regulators have used a top-down approach to regulation. Today, the OSC is modernizing its method by engaging with collaborative networks to determine what can be done better, together.” added Vingoe.
The report contains steps that the OSC Innovation Office will take to support RegTech innovation in Ontario, including promoting greater collaboration among innovators, regulators and market participants. As part of its efforts, the OSC invites stakeholders to share their perspectives on the potential for machine-readable securities regulation and building support for capital markets testing in Ontario through OSC IdeaHub, a pilot platform designed for public input.
“The first test has ended, but OSC TestLab is just getting started,” said Pat Chaukos, Director of the OSC Innovation Office. “Our goal is to champion beneficial innovation in our capital markets, but we can’t do it alone. We strongly encourage everyone interested in exploring and trying new solutions to participate in future tests.”
The report is available at oscinnovation.ca/TestLab2022-report/. For updates on OSC TestLab and other initiatives aimed at supporting innovation in Ontario’s capital markets, follow the OSC Innovation Office’s LinkedIn and Twitter.
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 http://www.osc.ca.
– 30 –