OSC Annual Report 2009 Francais

Effective Compliance and Enforcement

Deliver fair, vigorous and timely enforcement and compliance programs

The OSC uses a range of compliance and enforcement programs to oversee the capital markets. There are strengths and benefits to a compliance-enforcement continuum of oversight in all market conditions. Effective compliance and enforcement provide protection to investors. Effective compliance and enforcement foster fair and efficient capital markets.

In 2008–09, the OSC conducted a series of extraordinary compliance reviews of market participants in response to developments in the capital markets. The OSC reviews were undertaken to determine whether any additional regulatory responses, including possible enforcement action, will be necessary as a result of market events.

The OSC also implements outreach initiatives to assist market participants with understanding applicable regulatory requirements. For example, staff may provide guidance and information to market participants about a proposed rule or policy. The OSC Inquiries and Contact Centre also responds to questions about compliance-related requirements from market participants.

The  Compliance Section  contains more details about the OSC’s
compliance activities in 2008–09.

The Securities Act and the Commodity Futures Act give the OSC powers to enforce securities and commodity futures laws in Ontario. The OSC conducts investigations of alleged breaches of these laws and, where circumstances so indicate, will launch proceedings against a respondent. The 21 administrative proceedings initiated in 2008–09 represented an increase from 12 in the previous fiscal year.

If OSC compliance staff identify a serious breach of Ontario securities or commodity futures law, they will discuss the findings with the Enforcement Branch and together staff will determine an appropriate course of action based on the particular circumstances. Similarly, Enforcement staff bring concerns about compliance issues that they identify to compliance staff for review.

The  Enforcement Section  contains more details about the OSC’s
enforcement activities in 2008–09.