OSC’s Investor Advisory Panel to focus on crypto, CRM3 in year ahead

Communicating the risks from cryptoassets, reforming dispute resolution for harmed investors and ensuring transparent reporting of investment costs top the list of priorities for Ontario’s Investor Advisory Panel (IAP).

In its latest annual report, the independent investor advocacy group with the Ontario Securities Commission (OSC) pointed to a tumultuous year in crypto markets as it called for enhanced oversight.

“[C]rypto events during the year such as the onset of ‘crypto winter’ and the FTX collapse further highlighted the need for the OSC to continue focusing on investor protection and increase its visibility among, and education of, crypto investors,” the report said.

The panel cautioned the regulator against placing innovation ahead of its mandate to protect investors.

The advocacy group is also pushing for a fairer dispute resolution process to enhance investor redress by mandating the Ombudsman for Banking Services and Investments as the single dispute resolution service and giving it power to issue binding decisions.

After regulators finalized rules for the next phase of total cost reporting last month, the panel is focusing on the “crucial” matter of formatting how the information is presented to investors, and on implementing the CRM3 regime faster. The industry has until 2026 to adopt the new requirements.

The IAP also highlighted proposed changes to how investors receive investment documents. While supporting the more efficient delivery of documents, the panel called for modifications to ensure easy access for investors.

Mark Burgess

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Mark was the managing editor of Advisor.ca from 2017 to 2024.