OSC Launches Research Drive to Future-Proof Ontario's Capital Markets

TORONTO, ON – November 19, 2025

A Proactive Approach to Competitiveness

The Ontario Securities Commission (OSC) has announced a new Research Grant Competition, earmarking up to $150,000 to fund five research proposals focused on enhancing the competitiveness of Ontario’s capital markets. This initiative signals a proactive stance by the regulator as it seeks to understand and address the challenges and opportunities facing Canada’s largest provincial financial hub in an increasingly competitive global landscape. The competition, open to researchers at Canadian academic institutions, aims to stimulate independent thought and analysis on key issues impacting Ontario’s ability to attract investment and foster sustainable economic growth.

“The pace of change in financial markets is accelerating, and Ontario needs to be prepared,” noted one source familiar with the OSC’s strategic planning. “This isn’t about reacting to crises; it's about anticipating future challenges and proactively positioning the province as a leading destination for capital.”

Aligning with a Broadened Mandate

The competition isn't a departure from the OSC's core mission, but rather a natural extension of its expanded mandate. In 2021, the OSC’s legislative mandate was amended to explicitly include fostering capital formation and competitive capital markets – a shift reflecting a growing recognition of the regulator’s role in driving economic prosperity. This is further emphasized in the OSC’s 2024-2030 Strategic Plan, which prioritizes creating conditions for capital formation and innovation, making Ontario’s markets “inviting, thriving, and secure”.

The OSC's commitment is clear. The research competition is explicitly linked to these objectives. The OSC is looking to support and bolster Canada's capital markets with research-driven insights. While some may view this as academic exercise, it’s actually a strategic initiative to ensure Canada stays competitive in attracting global investments.

Beyond Bay Street: A Focus on Innovation and Collaboration

The OSC’s approach goes beyond simply gathering data or commissioning reports. By opening up the research process to academic experts, the regulator is seeking fresh perspectives and innovative solutions to complex challenges. This is a strategic move to tap into a wider pool of knowledge and expertise, fostering a collaborative environment that can drive meaningful progress. “There’s a growing recognition that regulators can’t solve these problems in isolation,” said another source. “External input is crucial, particularly from those with specialized knowledge and a deep understanding of market dynamics.”

The competition's focus on academic research highlights the importance of data-driven analysis in shaping effective regulatory policies. By supporting independent research, the OSC can gain a more nuanced understanding of the factors impacting Ontario’s capital markets, enabling it to make informed decisions that promote both investor protection and economic growth. The OSC recognizes the strength of rigorous, academic research in driving innovation within the regulatory framework.

Addressing Key Challenges: Junior Markets and Beyond

The research proposals are expected to address a range of critical issues, including the competitiveness of Canadian junior markets – a long-standing concern for many industry stakeholders. Smaller companies often face significant challenges in accessing capital, hindering their ability to innovate and grow. The OSC is hoping to identify strategies that can level the playing field and create a more favorable environment for emerging businesses.

However, the scope of the research extends far beyond junior markets. The OSC is also interested in proposals that explore the impact of technological disruption, the evolving regulatory landscape, and the challenges of attracting foreign investment. Specifically, the OSC wants research on ways to enhance market efficiency, reduce regulatory burden, and promote innovation. Sources indicate a particular focus on research that explores new technologies like AI and their application to regulation. One source emphasized, “Understanding how we can leverage technology to improve market oversight and reduce compliance costs is a key priority.” The goal is not simply to maintain the status quo but to identify opportunities for transformative change.

The competition underscores the importance of a proactive approach to regulation, one that anticipates future challenges and opportunities rather than simply reacting to events. By investing in research and fostering collaboration with academic experts, the OSC is positioning itself as a forward-thinking regulator committed to building a robust and sustainable capital market for Ontario.