Capital Markets Enforcement: Innovative, And Controversial, New Directions

There were a number of intersecting trends in the capital markets regulatory and enforcement landscape in 2023. These trends can serve as a window into the priorities and directions of capital market regulators for 2024.

As described in the Canadian Securities Administrators' (CSA) Annual Year in Review and the Ontario Securities Commission's (OSC) 2023 Annual Report [PDF], there was a slight increase in enforcement activity across Canadian capital markets in 2023, with an increase in whistleblower activity and in the amount of administrative penalties and restitution imposed. Low rates of collection, however, continue to be a challenge.

Investors and capital market participants will likely see increasing, and increasingly aggressive, regulatory action directed against market players in developing market areas (such as the cryptocurrency space) and against activities that are perceived to be exploiting investor appetites for sustainable or