The Ontario Securities Commission (OSC) is continuing to find ways to meet the challenges and issues faced by the financial industry both at home and abroad, according to Howard Wetston, OSC chairman and CEO.

“[At the] OSC we are aligning our organization to meet the challenges of today’s environment,” said Wetston in a key note speech delivered at OSC Dialogue 2012 in Toronto on Tuesday, “we’re taking a more forward looking, fact-based and tangible approach to identify issues and find appropriate responses.”

On the international side, the OSC has worked closely with the International Organization of Securities Commissions (IOSCO) through negotiating international requirements for the international derivative markets, sitting on the IOSCO board and task force as well as a newly created assessment committee for monitoring the implementation of regulation.

The OSC is also strengthening its international enforcement, said Wetston. For example, in May of this year, a statement of allegations was made against Hong Kong-based Sino-Forest Corp. 11 months after launching an investigation. “This was significant,” he said, “in that it re-enforced our expectation that issuers, regardless of where they are located, must meet our standards in order to list in our markets.”

Currently, international investigations make up roughly 35% of all investigations by the OSC. In the last six months, Wetston said, the OSC received 30 requests for information from jurisdictions outside Canada and has made 22 requests of its own to other jurisdictions.

Closer to home, the OSC is working to strengthen its oversight model regarding the TMX Group Ltd. and its ownership structure. One of the big issues when it comes to implementing an oversight program, said Wetston, is the cost. In this case, the OSC has decided that the TMX and its subsidiaries will cover the cost of this new and complex oversight program. “In our new fee rule,” he said, “we have proposed that those that drive the cost, pay the costs – sounds fair.”

As well, the OSC has launched or will soon be launching several initiatives to further enhance investor protection and education. For instance, the Fund Facts disclosure document is now available to investors, the CSA will soon publish a discussion paper on the cost of ownership of mutual funds in Canada, and in the first half of 2013 requirements for the disclosure of cost and performance reporting will come into effect. These requirements will ensure that clients receive reports on costs and performance associated with their investments from their advisor or dealer.

“The capital markets would not exist without investors,” said Wetston, “we have to be faithful to investor protection.”