OSC publishes 2021-2022 Summary Report for Investment Fund and Structured Product Issuers

TORONTO – The Ontario Securities Commission (OSC) today published its Summary Report for Investment Fund and Structured Product Issuers for the 2021-2022 fiscal year. The report is an important resource to provide investment funds and their managers with information on prospectus filings and exemptive relief applications, issues identified during continuous disclosure reviews and critical policy initiatives that impact investment funds.

“The investment funds industry has continued to show its resilience and innovation,” said Raymond Chan, Director, Investment Funds and Structured Products Branch at the OSC. “Despite significant market volatility at the onset of the pandemic, no public funds suspended redemptions, and assets under management rebounded over the course of several months.”

The assets under management and number of active investment funds in Ontario rose steadily during the 2021-2022 fiscal year, with ESG funds making up 23% of new funds.

“OSC Staff issued final prospectus receipts for several novel investment funds, including those with exposure to crypto assets – a global first,” added Raymond Chan.  The creation of new crypto asset funds, however, has slowed and represents less than 5% of new funds for the fiscal year.

This past year also saw OSC Staff extensively involved in both domestic and international initiatives on disclosure practices related to ESG products and investor protection concerns. A key milestone was reached when the Canadian Securities Administrators (CSA) published CSA Staff Notice 81-334 ESG-Related Investment Fund Disclosure. The OSC also continues to work on rule proposals and amendments that align with our commitment to burden reduction while maintaining investor protection.

Additionally, the OSC is enhancing the use of data to operationalize oversight of larger market risks. Data obtained from the annual Investment Fund Survey will allow the OSC to develop a more robust risk framework by leveraging key performance indicators, thereby strengthening our oversight.  Summary data has been shared on our website to promote transparency in a manner that protects investment fund manager confidentiality.

OSC Staff Notice 81-733 Summary Report for Investment Fund and Structured Product Issuers can be found on the OSC's website.

To stay informed about the latest regulatory news and issues to investment fund and structured product issuers visit the OSC’s IFSP eNews portal for timely articles published on an as-needed basis.

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.

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