To be an effective and responsive securities regulator – fostering a culture of integrity and compliance and instilling investor confidence in the capital markets. OSC VISION STATEMENT
	David Wilson CHAIR, ONTARIO SECURITIES COMMISSION

Public confidence is integral to the efficiency of the capital markets of Ontario and the health of our overall economy. The vision of the Ontario Securities Commission is to be an effective and responsive securities regulator that fosters a culture of integrity and compliance among market participants and instils investor confidence in the capital markets. An effective and responsive securities regulatory regime promotes confidence by preventing misconduct and maintaining market integrity. This, in turn, provides protection to investors.

The Commission's vision was developed to articulate the OSC's commitment to the important work of regulating the capital markets. It is intended to reflect the values and the aspirations of the organization. Our statutory mandate is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in capital markets. To fulfill this mandate, Commissioners and OSC staff have devoted their energy and determination to achieving the Commission's four strategic goals. This annual report is organized around these four goals. We have made progress against our goals but recognize there is still plenty of work to do.

FROM LEFT TO RIGHT : David Wilson Chair Lawrence Ritchie Vice-Chair Peggy Dowdall-Logie Executive Director James Turner Vice-Chair

Over the 2007-08 fiscal year, OSC staff worked on a number of significant developments in the evolving marketplace, including two important mergers. TSX Group Inc. and Bourse de Montreal Inc. agreed to combine their exchange operations. The Investment Dealers Association of Canada and Market Regulation Services Inc. agreed to merge their activities into a single self-regulatory organization (SRO). The OSC reviewed and approved specific documentation related to the transactions as part of its oversight of exchanges and SROs in Ontario.

OSC staff have conducted targeted reviews of continuous disclosure filings by those reporting issuers identified as holders of non-bank-sponsored asset-backed commercial paper (ABCP). The reviews focused on the reasonableness of assessments of the fair value of non-bank-sponsored ABCP holdings as well as proper disclosure and presentation in financial statements and management's discussion and analysis. This work is part of an initiative by the Canadian Securities Administrators (CSA) to respond to developments in the global credit markets. Furthermore, we will continue to co-operate with the International Organization of Securities Commissions (IOSCO) to contribute to a consistent regulatory response to the international liquidity crisis.

In addition, the OSC and its partners in the CSA have engaged in constructive discussions with the U.S. Securities and Exchange Commission in respect of mutual recognition. Under a mutual recognition agreement, Canadian exchanges, and possibly investment dealers, could be exempt from the requirement to register in the U.S. by being registered in Canada.

The OSC recognizes that it has a responsibility to show leadership as well as to co-operate effectively within the current regulatory framework. To the maximum extent possible, management and staff have worked effectively with the other members of the CSA and the SROs to modernize and harmonize securities regulation across Canada. Moreover, the OSC has played a leadership role in its contribution to the initiatives of IOSCO to promote high standards of regulation in order to maintain fair and efficient global markets.

This annual report describes some of the activities and initiatives undertaken by the Commission in the 2007-08 fiscal year. It also provides the Commission's audited financial statements for the fiscal year ended March 31, 2008.

The conclusion of the 2007-08 fiscal year coincided with a transition of two Commission positions at the OSC. Commissioner Robert Shirriff, who served as the Lead Director of the Commission since 2005, stepped down after his term of office expired in March 2008. On behalf of my fellow Commissioners, I wish to thank Mr. Shirriff for his leadership and exemplary service to the Commission and its stakeholders. I look forward to working with our new Lead Director, Commissioner David Knight, as the Commission addresses new challenges ahead. I also wish to express the Commission's appreciation and thanks to Commissioner Harold Hands, whose term of office expired in April 2008. Mr. Hands had served the Commission since 2002, providing valuable counsel and insight. Looking to the year ahead, the Commission is indeed fortunate to welcome two new Commissioners who were appointed in April 2008. Both Mary Condon and Paulette Kennedy have extensive relevant experience to bring to the Commission table. I welcome the opportunity to work with them in 2008-09. In closing, I want to thank all of the Commissioners, management and staff of the OSC for their integrity and professionalism in working to achieve the Commission's mandate. Together, we are responding to the challenges created by the rapidly evolving capital markets with dedication and energy. We remain steadfast in our determination to protect the integrity of Ontario's capital markets and to minimize misconduct in those markets. In this manner, we are serving those investors who put their capital to work in our economy. Yours very truly,

“We remain steadfast in our determination to protect the integrity of Ontario's capital markets and minimize misconduct in those markets. In this manner, we are serving those investors who put their capital to work in our economy.” OSC CHAIR David Wilson OSC 2008–09 goals The OSC's Statement of Priorities for 2008–09 identifies the following four goals for fulfilling the mandate of the Commission: Identify the important issues and deal with them in a timely way. Deliver fair, vigorous and timely enforcement and compliance programs. Champion investor protection, especially for retail investors. Support and promote a more flexible, efficient and accountable organization.