FOR INVESTMENT FUNDS AND STRUCTURED PRODUCTS
On October 19, 2022, the Investment Funds and Structured Products Branch (IFSP) of the Ontario Securities Commission (OSC) published their Annual Summary Report covering 2021-2022 .
Of particular interest to IIAC Members will be the amount of focus on ESG-related matters referenced throughout. Specifically, during ESG-related funds’ prospectus reviews it is noted that IFSP staff are “digging deeper” and asking IFMs to provide copies of all sales communications related to the ESG-related funds in question to ensure compliance with CSA Staff Notice 81-334. This is cited in addition to the targeted continuous disclosure reviews conducted on 32 ESG-related funds of 23 different IFMs, and the inclusion of a reminder about IOSCO ESG recommendations that are heavily relied upon by the CSA in conducting these types of reviews.
Another material inclusion is the reference to complaints received by IFSP Staff related to insufficient disclosure and exaggerated or misleading claims in internet advertising and on social media platforms. The IIAC recently issued cautionary guidance with respect to regulatory focus on social media and continue to urge members to exercise caution in this regard.