The Ontario Securities Commission (OSC) published staff findings and guidance on the use of digital engagement practices (DEPs) by online retail investing platforms, aimed at supporting registrants’ compliance with existing securities obligations and promoting responsible application of these tools. The focused compliance examination found DEPs are increasingly used by registrants, with observed benefits such as helping clients track savings goals, providing educational nudges and account security alerts, and encouraging long-term investing behaviour in clients’ best interests. Staff also raised concerns where DEPs appeared designed to drive additional trading activity and where firms lacked adequate policies and procedures; examination findings were shared with the reviewed firms, including any required actions. The OSC also highlighted investor-facing risks from certain gamification techniques used to promote specific assets and pointed to outreach and resources, including GetSmarterAboutTrading.ca, while noting the examination results will inform its future research on DEPs.
Ontario Securities Commission 2025-10-22
Ontario Securities Commission publishes compliance examination findings and guidance on digital engagement practices in online retail investing
The Ontario Securities Commission (OSC) released findings and guidance on digital engagement practices (DEPs) used by online retail investing platforms, emphasizing compliance with securities obligations. The examination noted benefits like enhanced client engagement but raised concerns over DEPs promoting excessive trading and lacking adequate policies. The OSC also highlighted risks from gamification techniques and indicated these findings will guide future DEP research.