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Ontario
Securities
Commission


20 Queen St. W.
22nd Floor
Toronto, ON M5H 3S8
Commission des
valeurs mobilières
de l'Ontario
FOR IMMEDIATE RELEASE

March 29, 2017


OSC Publishes Report on Behavioural Insights in Financial
Policy-Making and Regulation


TORONTO – The Ontario Securities Commission (OSC) today published OSC Staff Notice 11-778 Behavioural Insights: Key Concepts, Applications and Regulatory Considerations, a report on how leading practitioners and regulators around the world are using behavioural insights to address issues in capital markets and improve outcomes for investors and market participants.

Behavioural insights use psychology, economic and other research to examine how consumers are often neither deliberate, nor rational in their decisions in the way that traditional models, strategies and policies assume.

“It is clear that applying behavioural insights to financial policy-making and regulation has benefits for investors and market participants alike,” said Tyler Fleming, Director of the Investor Office at the OSC. “Understanding human behaviour enables regulators to better comprehend, diagnose and address market issues.”

The report found that the use of behavioural approaches in the public and non-profit sectors has increased significantly over the past decade, and other securities regulators have increasingly applied these approaches in their work and have successfully improved outcomes for investors and market participants.

The year-long multi-faceted research study included reviews of literature, interviews with leading academics, and interviews with other regulators and governments that incorporate behavioural insights into their work.

Over the coming year, the OSC will identify potential areas to apply behavioural insights in policy development and operational processes, with a view to identifying applications that lead to better outcomes for investors and market participants.



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