What Is the Ontario Securities Commission?
The Ontario Securities Commission (OSC) is the largest securities regulator in Canada, enforcing securities laws in the province of Ontario. As a crown corporation, the OSC is answerable to the provincial government of Ontario.
Understanding the Ontario Securities Commission (OSC)
The Ontario Securities Commission (OSC) regulates exchanges, alternative trading systems (ATS) and quotation and trade reporting systems (QTRS) in the province of Ontario. Like virtually all securities regulators, the OSC works to maintain market integrity and investor confidence by enforcing securities laws. Specifically, the OSC enforces the Securities Act and the Commodity Futures Act, both of Ontario.
The OSC develops securities rules by consulting with the Canadian public, advisory committees and international organizations. The commission is empowered to take a range of actions to enforce compliance with Ontario securities law. It can issue a cease trade order, order the restatement and refiling of financial statements, and add conditions to a registration. It can also, following an enforcement proceeding, impose sanctions and even fines, but recovering damages for defrauded investors is not within its purview.
The Ontario Securities Commission and SROs
The OSC currently recognizes two self-regulatory organizations (SRO), the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA). The three organizations divide up compliance review duties. The OSC reviews advisers, exempt market dealers, scholarship plan dealers and fund managers. The IIROC reviews investment dealers and futures commission merchants. The MFDA reviews mutual fund dealers. These regulatory bodies may subject a firm to a compliance review based on complaints, as part of a broad sweep or at random.
Limitations of the Ontario Securities Commission
While the OSC’s mandate to “foster fair and efficient markets” may seem quite broad, there are limits on its ability to regulate in legal gray areas. For example, in 2017, Canadian markets were disrupted by illegal short and distort campaigns, in which short sellers spread false information to drive down the price of the stock they’re shorting. When investors demanded the OSC take action, the commission explained that there is often little it can do without specific evidence of intentionally fraudulent statements. That can be difficult to find, and in some cases, short-sellers are rattling markets without relying on false information at all. They are simply identifying a company they believe is overvalued and shorting it while actively campaigning for its price to drop. While the OSC and IIROC have certain tools to put a damper on the short selling of a stock, they are typically averse to using them, fearing their interference may be more disruptive than the short campaign.
FAQs
The OSC is an active member of the Canadian Securities Administrators , which is a forum comprised of the 13 securities regulators of Canada's provinces and territories. The CSA works to foster a nationally coordinated and modernized securities regulatory framework.
What is the purpose of OSC? ›
The Objective of the Unit Osc
Harmonize procedures and process applications for planning permissions, building plans and land development application, taking into account the provisions under the National Land Code 1965 (Act 172) and the Street, Drainage and Building Act 1974 (Act 133).
What does OSC regulate? ›
In Ontario, marketplaces, including exchanges and alternative trading systems (ATSs); self-regulatory organizations (SROs); clearing agencies; and investor protection funds are regulated by the Ontario Securities Commission (OSC).
What is a reporting issuer OSC? ›
Under the Ontario Securities Act, a reporting issuer is a person or company who has outstanding securities, has issued securities, or proposes to issue a security, and: Has filed a prospectus for which a receipt has been issued under the Securities Act (or predecessor legislation).
What is the American equivalent of the CSA? ›
CSA (C US) Certification is equivalent to UL Listing because the certification is to US Standards. The CSA (C US) nomenclature is the current version of what was previously called CSA NRTL (Nationally Recognized Testing Laboratory).
What is CSA certification for Canada? ›
CSA standards are safety standards in Canada for electrical appliances, medical devices, machinery, equipment, etc. The Canadian Standards Association was established in 1919 as a non-profit, non-governmental standardization organization.
What can OSC do? ›
The Office of Special Counsel (OSC) handles disclosures of wrongdoing within the executive branch of the federal government from current federal employees, former federal employees, and applicants for federal employment.
What is the main role of the OSC? ›
The Ontario Securities Commission works to: protect investors from unfair, improper or fraudulent practices. foster fair, efficient and competitive capital markets, and confidence in capital markets.
How does the OSC protect investors? ›
The OSC works to protect investors by making and enforcing rules governing the securities industry in Ontario. The Investor Office leads the efforts at the OSC to identify and address investor issues and concerns.
What is the difference between OSC and IIROC? ›
The OSC reviews advisers, exempt market dealers, scholarship plan dealers and fund managers. The IIROC reviews investment dealers and futures commission merchants.
Cease trade orders
Once issued, a CTO prohibits or limits trading in securities. CTOs may be issued for a variety of durations. Temporary CTOs are those with an expiry date, whereas permanent CTOs remain in effect indefinitely until revoked by the OSC.
What is the difference between issue and issuer? ›
Also, "emission" is often called a set of specific securities placed within one issue. Allocate the primary and additional issue of securities. Issuer is an entity who issues securities.
What is the difference between CSA and IIROC? ›
The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets. IIROC is the pan-Canadian self-regulatory organization that oversees all investment dealers and their trading activity in Canada's debt and equity markets.
What does CSA stand for in CSA Group? ›
Canadian Standards Association (CSA) | IPAC Canada.
What is national instrument 31-103? ›
31-103 - Registration Requirements, Exemptions and Ongoing Registrant Obligations.
