Regulation | Nov 15, 2023

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Latest OSC draft statement of priorities reveal new course in the financial advisory landscape for discount brokers and robo-advisors

Lifting Limitations on Financial Advice

• The OSC in collaboration with CIRO is contemplating a significant change by allowing Order Execution Only (OEO) firms, like discount brokers and robo-advisors, to offer non-tailored financial advice such as risk warnings and guidance to enhance the safety net for investors.  This move addresses a critical gap in the current financial ecosystem, where DIY investors often resort to unreliable sources like social media for guidance, especially regarding complex products like leveraged investments and meme stocks.

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• This OSC initiative is part of a larger strategic overhaul over the next six years, influenced by its recent reorganization and recommendations from various authoritative bodies.
• These changes represent a broader commitment to ensuring that the Canadian financial market remains dynamic, transparent, and trustworthy. This approach is crucial for maintaining a robust financial ecosystem that supports both investor interests and market growth.

Feedback Opportunity

Stakeholders are invited to contribute their views on the OSC’s draft statement of priorities until December 18.

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