Investors
OSC's Role
Providing protection to investors is a key part of the OSC’s mandate. As a regulatory agency, the OSC administers and enforces the Securities Act (Ontario) and the Commodity Futures Act (Ontario). Specifically, the OSC works to protect investors by making and enforcing rules governing the securities industry in Ontario.
Making rules
The OSC makes rules that aim to prevent misconduct and maintain the integrity of the markets. As part of overall policy development, we consult with investors and other organizations to identify and address issues of interest and concern to investors.
For example, the OSC has established an Investor Advisory Panel that will provide responses to public requests for comment by the Commission on proposed rules, policies, concept papers and discussion drafts.
Monitoring compliance
The OSC monitors market participants for compliance with Ontario securities law. If we find that an individual or firm is not complying with the law and we cannot resolve our concerns with them, we can take a number of actions.
For example, the OSC can issue a cease trade order on an issuer’s securities, order a public company or investment fund to restate and refile its financial statements, or impose terms and conditions on a registration. Where appropriate, we may take enforcement action.
Enforcing rules
The OSC investigates alleged breaches of Ontario securities law, such as misleading disclosure, abusive trading practices and illegal insider trading. If an individual or company contravenes securities law, the OSC can impose sanctions. For example, we can ban individuals from leadership roles in public companies, and order firms and individuals to pay a penalty.
Provincial securities legislation also gives the OSC the authority to go to the Ontario courts to prosecute accused wrongdoers and send a strong message of deterrence.
However, as a regulatory agency, we do not normally recover money for investors.
