OSC’s New Financial Advisory Reforms

Regulation | Nov 15, 2023

Image: Unsplash/frame harirak

Latest OSC draft statement of priorities reveal new course in the financial advisory landscape for discount brokers and robo-advisors

Lifting Limitations on Financial Advice

• The OSC in collaboration with CIRO is contemplating a significant change by allowing Order Execution Only (OEO) firms, like discount brokers and robo-advisors, to offer non-tailored financial advice such as risk warnings and guidance to enhance the safety net for investors.  This move addresses a critical gap in the current financial ecosystem, where DIY investors often resort to unreliable sources like social media for guidance, especially regarding complex products like leveraged investments and meme stocks.

See:  Consultation: OSC Wants to Increase Fees for Crypto Firms

• This OSC initiative is part of a larger strategic overhaul over the next six years, influenced by its recent reorganization and recommendations from various authoritative bodies.
• These changes represent a broader commitment to ensuring that the Canadian financial market remains dynamic, transparent, and trustworthy. This approach is crucial for maintaining a robust financial ecosystem that supports both investor interests and market growth.

Feedback Opportunity

Stakeholders are invited to contribute their views on the OSC's draft statement of priorities until December 18.

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Buying a Canadian MSB and Reviewing FINTRAC RPAA and Financial Due Diligence

Why MSCI Is Removing Strategy From Its Indexes

How Is Crypto Market Cap Calculated? What a Change in the Top Coins Really Tells You

What Happens When AI Agents Start Trading Together?

Canada’s VC Totals Are Reliant On Mega Deals

Why Canada Is Making It Cheaper to Leave Your Bank

CSA Tokenization Report Shows Where Canada May Scale First

Creative Ways to Boost Team Morale

Webull Adds Free Data as Canadian Brokers Compete Beyond Fees

BBVA Deploys Canadian AI for Derivatives Pricing