Regulator flags AI, derivatives, and a national marketing sweep among its top examination priorities
Ontario's securities regulator is sharpening its focus on high-risk firms, marketing practices, and artificial intelligence as it sets out its 2026-2027 examination priorities.
The Ontario Securities Commission's Registration, Inspections and Examinations Division - known as RIE - published OSC Staff Notice 33-761 on May 14, 2026, signaling where compliance officers should expect scrutiny in the year ahead.
At the top of the list: high-impact firms. RIE said it will continue to concentrate on high-impact firms - those with considerable assets under management whose operational stumbles could ripple through Canadian capital markets - alongside high-risk firms identified through its Risk Assessment Questionnaire. The questionnaire feeds into examination selection and is shared with other OSC divisions and counterparts at the Canadian Securities Administrators.
"RIE's 2026 examination priorities continue to provide greater transparency to our stakeholders on areas of focus for the upcoming fiscal, as well as promoting proactive compliance from our registrants," said Matthew Onyeaju, Senior Vice President, RIE. "We aim to promote strong compliance practices, enhance awareness of regulatory obligations, and support confidence in Ontario's capital markets."
Marketing practices are getting a fresh look. RIE will join other CSA jurisdictions in a national thematic sweep covering both traditional and digital marketing across direct registrants. Examiners will probe policies and procedures, oversight of marketing activities, performance advertising, and disclosures - with findings potentially shaping new industry guidance.
Derivatives dealers should expect continued attention. RIE built out a compliance program last year to assess adherence to National Instrument 93-101 Derivatives: Business Conduct, which took effect in September 2024. Recent examinations have looked at supervision structures, OTC derivatives trading, communications monitoring, and dealings with counterparties. That work continues.
There is a technology angle, too. RIE said it is exploring artificial intelligence to enhance its own examination processes. At the same time, an AI Initiative launched at the end of last fiscal year is now in its second phase, with examinations underway to test whether registrants using AI systems are complying with securities legislation. Findings will be shared this fiscal year.
Other items on the radar include direct compliance examinations of CIRO dealer members, with separately managed accounts a particular focus, and continued reviews of capital market participation fees and excess working capital filings. RIE also flagged that it is working with other OSC divisions and regulatory partners to assess the rising prevalence of "ramp-and-dump" stock manipulation schemes and account intrusions in Canada.
Results from a focused cybersecurity examination conducted jointly with the CSA will be published in the second quarter of this fiscal year.
The full text of OSC Staff Notice 33-761 is available at https://www.osc.ca/en/news-events/news/registration-inspections-and-examinations-division-ontario-securities-commission-sets-out-its-2026.
