OSC highlights the importance of governance and oversight when considering the adoption of AI

TORONTO, Nov. 12, 2026 /CNW/ -- Today, the Ontario Securities Commission (OSC) published Staff Notice 33-763 Focused Compliance Examination of Artificial Intelligence Systems Use and Governance (OSC SN 33-763) that provides the observations and findings from the Registration, Inspections and Examinations Division's (RIE) Artificial Intelligence compliance initiative (OSC AI Initiative).

The OSC AI Initiative observed that most registered firms remain in the early stages of AI adoption, although some reported more advanced use in specific areas. The OSC AI Initiative covered a range of areas, including governance of AI system use, employee training, risk assessments and controls, oversight of third-party service providers and client disclosure.

The OSC expects registered firms to apply a proportionate, risk-based approach and oversight to the nature, scale and complexity of the risks each AI system use case presents. Registered firms remain accountable for their use of AI and its outputs.

"Artificial intelligence is rapidly reshaping our capital markets, from enhancing client service to improving efficiencies," said Matthew Onyeaju, Senior Vice President, RIE, at the OSC. "Effective governance and thoughtful oversight are essential to realizing its benefits responsibly and in the public interest."

The Notice highlights the key findings from the OSC AI compliance examination and reinforces existing guidance on the use of AI systems. The guidance reflects current securities law requirements and does not create any new rules or modify existing ones.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at www.osc.ca.

Note to editors:

• OSC Staff Notice 33-763 – Focused Compliance Examination of Artificial Intelligence Systems Use and Governance was developed to assess registrants' compliance with applicable securities laws requirements when using AI systems, informed by the guidance provided under CSA Staff Notice and Consultation 11-348 - Applicability of Canadian Securities Laws and the use of Artificial Intelligence Systems in Capital Markets. 
• In November 2025, OSC Staff surveyed 787 registered firms in Ontario, and achieved an 86% response rate.

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SOURCE Ontario Securities Commission

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