Joint forum discusses AI in financial markets

Regulators and experts explore AI's impact, focusing on opportunities and emerging risks in finance

Joint forum discusses AI in financial markets

The annual meeting of the Joint Forum of Financial Market Regulators, led by Lise Estelle Brault, Chair of the CSA Financial Innovation Hub, focused on the opportunities and challenges posed by artificial intelligence (AI) technologies in financial markets.

It was attended by members from the Canadian Securities Administrators (CSA), the Canadian Council of Insurance Regulators (CCIR), the Canadian Association of Pension Supervisory Authorities (CAPSA), representatives from the Canadian Insurance Services Regulatory Organizations (CISRO), and the Mortgage Broker Regulators' Council of Canada (MBRCC).

Stan Magidson, CSA chair and chair and CEO of the Alberta Securities Commission, stated, "We are adapting to the new and ever-evolving dynamics of regulation in a digital world. The integration of AI can lead to the development of new financial products and services but can also create new risks and the need for new governance considerations."

He emphasized the regulatory commitment to maintain “fair and efficient capital markets and remain vigilant in promoting the responsible development of AI in finance.”

Luc Sirois, chief innovator, and president of the Council of Innovation of the Government of Québec, shared insights on digital transformation across different financial sectors and the necessity for interdisciplinary collaboration to connect research and practice.

He noted the disruptive potential of these advances and the need for enhanced partnerships between government and business to navigate the fast pace of technological change.

The meeting also included updates on important initiatives from the Joint Forum members.

Among these was the discussion on the implementation of Total Cost Reporting (TCR) reforms, aimed at increasing awareness among investors and policyholders about the ongoing costs of owning investment funds and individual segregated fund contracts.

Angela Mazerolle, CAPSA chair and vice-president, Regulatory Operations with the New Brunswick Financial and Consumer Services Commission, reported, “CAPSA continues to support the important work of the Joint Forum and the sharing of information between the member organizations.

“We were pleased to report on our work in updating the 2004 Guidelines for Capital Accumulation Plans, originally developed by the Joint Forum, with the intention to have this important updated Guideline finalized this summer,” she continued.

Huston Loke, chair of CCIR and executive vice president, Market Conduct at FSRA, commented on the Total Cost Reporting project, “Consumers are better protected when the performance and costs of the funds they own are disclosed on a consistent and harmonized basis.”

“The Total Cost Reporting project is a testament to the Canadian Council of Insurance Regulators' (CCIR) and the Canadian Securities Administrators' shared commitment to supporting a stable and innovative marketplace in which industry can compete and the Canadian public can have confidence that consumers are being treated fairly.”