Each year, the CSA provides a Year in Review report as an update on progress made under the current Business Plan, as well as additional priorities or initiatives undertaken in response to emerging issues and changing market conditions. This year’s report covers the period between July 1, 2023, and June 30, 2024 and highlights progress toward fulfilling the CSA’s mandate and achieving the strategic goals outlined in our 2022-2025 Business Plan.
Over the last year, our markets have been influenced by significant international political and social events, developments in emerging technologies, environmental, social and governance (ESG) considerations, investor behaviours and more. The CSA monitors each of these issues and considers possible implications for our work. This past year, we also reached out and sought feedback from Canadian market participants on a number of initiatives. We have appreciated the opportunity to listen to different perspectives and to incorporate this feedback into our work. You can consult the full 2023-2024 Year in Review by clicking here. test test
SELECTED HIGHLIGHTS
Click here to see the full highlights in our Year in Review.
Investor alerts, cautions, and warnings issued to help protectthe public, of which more than half related crypto.
Published the 7th CSA Investor Index tracking and measuring investor behaviour, knowledge and incidences of fraud.
Individuals and 39 companies banned from participating the capital markets following enforcement proceedings.
Publications signaling final adoption of rule changes, consultations, blanket orders and guidance on CSA policy developments.
Crypto-related matters where CSA members took enforcement action to protect the integrity of capital markets.
Click here to see all the spotlights in our Year in Review.
Enforcement activities: Anatomy of a disruption
It started with a click and ended with a cross-Canadian effort to prevent investors from being victimized in real time.
In early 2023, an investigator at a Canadian securities regulator came across a suspicious promoted social media post. Although the post claimed to be from a real business located in the United States, the content didn’t feel right. When the investigator clicked on the link, his suspicions were confirmed. The link led to a convincingly crafted but fake CBC news article claiming billionaire Elon Musk had launched a new investment platform, which promised to be more profitable than Bitcoin and Tesla. The article was targeted to Canadians, featuring glowing – but fictitious – quotes from a real CBC reporter. The platform was presented as a once-in-a-lifetime opportunity to get rich with minimal risk. But CSA members doubted its authenticity.
As investigators dug deeper, they discovered more red flags and details that didn’t add up…
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Developing a robust regulatory regime for crypto assets
As part of the CSA’s continued response to emerging market issues, this past year we continued to develop a coordinated regulatory, oversight, compliance and enforcement regime for CTPs. Digital assets continue to grow in popularity, which presents a challenge requiring cooperation and collaboration with other regulators. By working together, we are able to examine and address potential supervisory gaps and risks. This included:
Publishing guidance to help fund managers understand and comply with securities law requirements.
Published for comment a set of proposed regulatory requirements for investment funds; the second phase of a project to implement a Canadian regulatory framework for public investment funds holding crypto assets.
Provided further regulatory clarity and guidance to CTPs about the CSA’s interim approach to the trading of stablecoins.
Developed informational resources to support investors’ understanding of crypto assets and the risks they pose as an investment.
Collaborate internationally and lend their expertise to publications that help set the tone for the development of policy recommendations for crypto and digital assets.
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Strengthening investor protection and incorporating investor perspectives through the IAP
During its second year, the Investor Advocacy Panel (IAP) continued its in-depth reviews of critical investor-oriented projects, putting into practice its members’ wide-ranging knowledge and expertise, and building on the foundation established in its first year. The IAP’s unique role enables the group to provide insight and feedback on proposals before they are made public, as well as participate in later phases of CSA policy development initiatives. This allows the IAP to influence the course of projects from inception and to consider investor perspectives throughout the process.
The IAP’s impact on CSA initiatives is most significant when the Panel collaborates closely with CSA committees and working groups. As such, the IAP continues to engage actively with CSA staff on ongoing policy projects that impact retail investors and proposed initiatives to enhance retail investors’ abilities to participate in Canada’s capital markets.
