OSC TestLab 2022

RegTech Innovation in Action

Exploring Technology-Driven Solutions for Ontario’s Capital Markets

Executive summary

OSC TestLab is a group testing environment for capital market innovations, enabling market participants and the OSC to experiment, learn, and improve, together.

TestLab’s inaugural test took place from June to December 2022 and explored the potential of RegTech to address challenges and opportunities in Ontario’s capital markets in response to two problem statements: 1) making product information more accessible; and 2) improving advisor-client interactions.

LockDocs, Wealthscope, Mako Fintech, Syntoniq, TMX, Morningstar, and Broadridge each tested solutions with Ontario registrants and investors as part of TestLab 2022. The OSC Innovation Office observed testing and facilitated dialogue and collaboration among test participants and subject matter experts from across the OSC. Through this report, the Innovation Office is sharing what was learned about the potential for RegTech in Ontario’s capital markets as part of TestLab 2022. Nothing in this report should be interpreted as an endorsement or recommendation for a particular solution or solution provider.

TestLab 2022 highlighted the significant and varied opportunities for RegTech solutions to support registrants and investors in Ontario's capital markets. From onboarding and risk assessments to product research and comparisons, the Innovation Office heard that RegTech has the potential to enhance client engagement and improve efficiency in key aspects of a registrant’s operations.

Ongoing feedback from the testing process helped test participants improve their solutions and helped the OSC gain insight into the challenges and opportunities for RegTech innovation and adoption in Ontario’s capital markets.

Key insights that emerged from TestLab 2022 were that:

Reflecting and building on TestLab 2022, the OSC Innovation Office identified four ways to better support RegTech innovation, through:

TestLab 2022 has ended, but the next OSC TestLab test is just getting started. With new themes in Ontario’s evolving capital markets shaping each test, the next one will look quite different, but will have an important thing in common with TestLab 2022: striving to create more innovative, competitive, and prosperous capital markets for all Ontarians.