In 2016, OSC doled out $59 million in sanctions via regulatory settlements and contested hearings, according to its 2016 annual report (OSC notes this total doesn’t include the $164.3 million that was paid directly by respondents to investors).
But the regulator only collected about $11 million of that total, or 19%, says the reports. Still, that’s better than 15% in 2015 and nearly 5% in 2014.
OSC says, “Historically, collection rates from market participants have been much higher than from respondents sanctioned on matters related to fraud, where assets are typically non-existent or inaccessible. Collections of monetary sanctions improved in 2016 primarily because two of the respondents are well established firms that paid the sanctions assessed to them.”
In its report, OSC lists five main goals that it has focused on over the last year. The top three were as follows.
Investor protection. To work toward this goal, the regulator focused on initiatives such as working on a best interest standard and targeted registration amendments. It also released two research reports on mutual fund fees (one in June 2015 and one in October 2015).
Plus, says OSC, “CSA members are finalizing their analysis of advisor compensation practices,” and results will be available by the end of this fiscal year.
Responsive regulation. OSC’s priorities in this area include promoting board diversity, improving access to capital for businesses and reviewing market structure.
Effective enforcement. OSC says it has looked more closely at exempt and derivatives markets, and clearing agencies. In July, the regulator also launched its whistleblower program. OSC adds it’s looking at how to use technology to speed up enforcement and make hearings accessible. Further, says OSC, “We have implemented a guideline to release decisions within six months of a hearing, where possible,” noting that 93% of decisions this year satisfied this timeline.