OSC releases findings on digital engagement practices in online investing

TORONTO, Oct. 22, 2025 /CNW/ - The Ontario Securities Commission (OSC) today published OSC Staff Notice 33-760 Digital Engagement Practices: Focused Compliance Examination of Online Retail Platforms. The notice outlines staff findings and provides guidance on the use of digital engagement practices (DEPs), including best practices for their responsible application by registrants serving retail clients. The results of this initiative will inform future research by the OSC.

OSC staff reviewed firms' use of DEPs to ensure compliance with existing securities obligations. Staff identified that DEPs are increasingly being used by registrants and found both positive and negatives in how they are deployed. Positive examples of DEPs observed by staff included helping clients track savings goals, delivering educational nudges and alerts to promote account security, and encouraging long-term investing behaviour in the clients' best interests.  However, concerns were raised where DEPs were being used to drive further trading activity; and where firms did not maintain adequate policies and procedures. Examination findings have been shared with these firms, noting any required action to be taken.

"We recognize that digital tools can help retail investors in a variety of ways to improve education, efficiency and promote smart decision-making," said Matthew Onyeaju, Senior Vice President, Registration, Inspections & Examinations, at the OSC. "However, it is important that firms have taken adequate measures within their compliance framework to address the risks of improper use which could harm investors by encouraging excessive trading or speculative behaviours. These safeguards help maintain market integrity and support responsible investing."

Through its outreach efforts, the OSC is enhancing investor understanding of the potential influence DEPs can have. Some gamification techniques used to promote certain assets may pose risks to investors. The OSC has provided useful resources and research on how these techniques are being used on investing platforms. GetSmarterAboutTrading.ca highlights to users some of the gamification tactics in a simulated stock market.

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 https://www.osc.ca.

Note to editors: DEPs are tools including behavioural techniques, differential marketing, gamification, design elements, or design features that intentionally or unintentionally engage with retail investors on digital platforms, as well as the analytical and technological tools and methods.

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SOURCE Ontario Securities Commission

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