Pillar One: Intelligent regulation aimed at fostering a thriving capital market
Intelligently regulating the Alberta capital market is what we do. We strive to ensure that our regulatory regime is appropriate to the needs of our market, facilitates capital growth and promotes strong investor protection while not unduly burdening issuers and other market participants.
Objectives:
MAINTAIN AN EFFICIENT REGULATORY FRAMEWORK THAT SUPPORTS A COMPETITIVE ALBERTA CAPITAL MARKET
All new laws, rules, policies and projects will be assessed, and they will only be pursued when the benefits outweigh the costs. We will undertake regulatory changes and educational efforts that support growth of public markets by reducing regulatory burden, including by providing educational resources to assist early-stage issuers in understanding their obligations and their going public options. We will develop and implement regulatory changes to better facilitate capital formation in public and private markets, having regard to both traditional industries and diversification.
ADDRESS EMERGING REGULATORY FRONTIERS
To keep pace with the rapidly changing Alberta marketplace and constantly evolving securities industry, we will advance and lead work to develop the appropriate regulatory response for the use of emerging technologies by market participants, including digital assets and tokenization of securities, to advance the most appropriate outcomes. We will also enhance our use of data as an asset in the regulatory policy and operational decision-making processes.
We will assess and address systemic risks through collaborative efforts with other Canadian and international financial sector regulators. The ASC plays an important role in the CSA Standing Committee on Systemic Risk, as well as the Heads of Agencies (HoA) and its Systemic Risk Surveillance Committee. The ASC also engages with the Financial Stability Board and the International Organization of Securities Commissions (IOSCO) to actively monitor, analyze and consider how best to address risks that could impact markets nationally and internationally.
QUESTION THE REGULATORY STATUS QUO
As regulators we must adapt to changing market conditions while providing a level of stability upon which market participants can depend.
We will implement a continuous disclosure regime for reporting issuers that is streamlined and offers electronic/access-based delivery, examine the ongoing propriety of resale restrictions for reporting issuers, assess the use of semi-annual reporting through a pilot project, and consider market structure changes that facilitate capital formation and liquidity.
We will continue to work with the Canadian Securities Administrators (CSA) to be harmonized to the greatest extent possible, while remaining a strong advocate for the unique needs of market participants in Alberta. We will also continually monitor and research alternatives, scanning both the domestic and international regulatory environments to inform our position and policies on a variety of securities matters.
ENGAGE WITH OTHER REGULATORS
While our primary responsibility is to oversee the Alberta capital market, we must do so cooperatively and mindfully of regulations that govern other jurisdictions both nationally and internationally. With so many new developments, including new financial instruments and evolving digital assets, securities regulation is increasingly complex and much of it occurs in an international arena. As such, we will continue to actively engage with the CSA, the HoA, the North American Securities Administrators Association (NASAA), IOSCO, and other national and international bodies, to stay informed, , add value to the broader development of regulatory standards through our participation, and engage in areas that are critical to our being an effective, practical and intelligent regulator.
SUPPORT DIVERSIFICATION OF ALBERTA’S ECONOMY
To support the resiliency and integrity of our capital market, the ASC will actively facilitate positive innovation in the Canadian capital markets by creating conditions for firms to test new technologies and innovative business models. We will also continue to explore ways to support the province’s efforts to expand the financial sector in Alberta. Additionally, we will support the province’s efforts to diversify and build Alberta’s economy.
Pillar Two: Protect investors and market integrity through effective compliance oversight, education, disruption and enforcement
The ASC monitors current market activity, anticipates future challenges, collaborates with other organizations and acts decisively to disrupt misconduct, promote confidence, inform and protect investors and support market integrity.
Objectives:
ENSURE EFFECTIVE COMPLIANCE OVERSIGHT
Delivering effective compliance oversight is central to the ASC’s regulatory responsibilities. We will implement enhanced regulatory policy changes that instill investor confidence in markets and market intermediaries and proactively identify emerging issues, trends, and risks in securities and derivatives market structures, as well as associated trading, dealing and advising.
Priority initiatives will include co-leading CSA oversight of the Canadian Investment Regulatory Organization, the continued operationalization of the client focused reforms and playing a meaningful role in the oversight of OBSI, including seeking to implement binding decision making. We will also continue to refine our review process to increase personal interaction with registrants, pursue technology to assist with effective compliance oversight, monitor and analyze electronic media used in stock promotions and participate in a number of CSA working groups and projects designed to protect investors.
The ASC will also use technology tools to increase speed of and capacity for compliance and enforcement activities.
DETECT AND DISRUPT FRAUD AND MARKET MANIPULATIONS
As securities fraud and misconduct becomes ever more complex, crosses borders and incorporates new technologies to mislead investors and escape detection, it is imperative that we enhance our use of data and analytics, and integrate technological tools, to enable effective collaboration with key partners and support scalable disruption so that we can collectively detect and disrupt fraud and market manipulations. As part of this we will also continue outreach with partner agencies to share information and collaborate, work collectively with other regulators and seek support of market participants to detect securities misconduct.
ENHANCE INVESTOR EDUCATION EFFORTS TO REACH A BROADER AUDIENCE
Investment literacy is a life skill that helps investors grow and protect their hard-earned money. With longer life spans and fewer companies offering defined-benefit pensions, it is increasingly important that Canadians become knowledgeable about how to safely invest for their future.
The ASC will continue its efforts to develop data-informed investor education and communication programs that maximize the delivery of relevant and timely information for Albertans. We plan to continue to enhance our consumer or public-facing website, CheckFirst.ca, and our social media channels, expanding tools and resources and empowering all Albertans to learn about investing. We will also actively expand our investor education outreach through partnerships and continue to conduct timely and frequent campaigns, leveraging data collected from our compliance and enforcement activities whenever possible. We will continue to work to reach, engage and inform students, seniors, new Canadians, Indigenous communities and do-it-yourself investors within Alberta.
CONNECT EFFECTIVELY WITH MARKET CONSTITUENTS TO MORE EFFECTIVELY COMMUNICATE REGULATORY OBJECTIVES
The ASC will continue to work with market participants to advance their understanding of the regulatory regime, including developing and providing plain language web content and sharing regular, timely and meaningful information. We will continue to educate issuers through publishing and updating key reports and guidance, hosting webinars/seminars and developing educational content for our asc.ca website. We will position the ASC as the regulator of choice for new market participants seeking to enter the Canadian market.
Pillar Three: Foster a culture of engagement
The collective knowledge and experience of staff at the ASC is the foundation of our success. Their efforts to build strong relationships with their colleagues and with individuals and organizations that participate in Alberta’s capital market are a critical part of the administration of provincial securities laws. We must continue to foster a strong sense of collaboration, including seeking input from market participants and encouraging a two-way flow of information.
Objectives:
Engage stakeholders
Regular, timely and relevant engagement with all our stakeholders is critical to effective administration of Alberta’s securities laws. Our priority is to enhance communications and increase two-way dialogue with stakeholders, addressing their needs and incorporating valuable feedback into future endeavours, as appropriate. This includes actively engaging with national and international bodies and regulators to stay informed of domestic and global market developments, and advocate for appropriate regulatory outcomes.
POSTIVE RELATIONSHIPS WITH GOVERNMENT AND MEDIA
To promote efficient decision-making, alignment and timely implementation of broad policy objectives we will strive to have regular and meaningful communication between appropriate Government of Alberta officials and senior management.
To ensure our messages effectively reach and inform audiences, we continue to build relationships with media and continually work to enhance our digital communications properties.
STAFF ENGAGEMENT, RETENTION, DEVELOPMENT AND EMPOWERMENT
We strive to ensure that employees have the right information, tools and resources to carry out their duties with proficiency, efficiency and consistency, and that projects and tasks that are pursued reflect strategic priorities. As part of this we will enhance our internal programs by developing and implementing a flexible and comprehensive learning and development program for staff at all levels of the organization to support recruitment, retention and succession planning. Additionally, we will continue to provide a challenging and rewarding workplace that engages employees and promotes employee recognition.
FIT-FOR-PURPOSE OPERATIONAL BUSINESS PRACTICES
We are working to identify, assess and implement technology that can improve the efficiency and effectiveness of regulatory and operational functions, while supporting both internal and cross-CSA collaboration and continuing to be vigilant about maintaining a high level of governance and security for the ASC’s data and its IT network and systems, including our websites.
By engaging with employees, we will investigate opportunities for ongoing enhancements to the organization and workplace to maximize our ability to meet strategic objectives and to achieve our vision to be a best-in-class regulator.
Pillar Four: Embrace technology and innovation
All market participants are leveraging technology and innovation to deliver faster, better and broader services. To achieve our vision to be a best-in-class regulator, we must do the same. We must develop key new technological capabilities, strategically use automated processes that create efficiency, and unlock the value of our data so we can deliver a better regulatory experience.
Objectives:
ESTABLISH TECHNOLOGY PRACTICES AND PROCESSES THAT MAKE THE ASC STABLE, NIMBLE AND SURGICALLY INNOVATIVE
We will develop a clear roadmap to our future technology state, founded upon the principles of being stable, nimble and surgically innovative. These will ensure that our foundational systems are secure, integrated, and aligned with evolving business needs. We will adopt business simplicity as a principle so that we can implement technology tools as they evolve and selectively create and implement practical internal technology solutions to facilitate our work as a securities regulator. We will strengthen our business-IT partnership capabilities to support consistent, high-quality delivery across all projects and services, including enterprise architecture, business relationship management, software development lifecycle and IT operations processes, enterprise delivery standards, organizational change management, and testing/quality assurance practices and processes.
ENSURE THE ASC HAS MODERN, SECURE AND CONNECTED DIGITAL SYSTEMS
To ensure that technology contributes to supporting our regulatory work, we will execute numerous multi-year projects that focus on the modernization of our core systems. These will ensure that our foundational systems are secure, integrated, and aligned with evolving business needs. We will strengthen our cybersecurity posture to address emerging threats, enhance detection and response capabilities, and integrate with broader modernization activities. Our initiatives will align with national standards, reinforce operational resilience, and ensure the ongoing protection of the ASC’s systems and data.
ENABLE EFFECTIVE DATA USE, ADVANCE CYBERSECURITY, ADOPT RESPONSIBLE, ARTIFICIAL INTELLIGENCE USE, AND ENHANCE IT AND BUSINESS CAPABILITIES
We will enhance the ASC’s ability to manage, govern, and use information and data as a strategic asset by making improvements to data architecture, governance, integration and reporting/analytics. This will ensure that we have access to trusted and relevant data to inform decision-making and enable evidence-based regulation and operations. We will ensure personal information is collected and stored within the ASC in compliance with Alberta’s new access and privacy law requirements for public agencies.
We will responsibly use AI to improve efficiency, insights, and service delivery. We will introduce new AI-enabled tools and prioritized use cases that support regulatory analysis, process automation, and public engagement. This initiative will ensure AI adoption occurs transparently, ethically, and in alignment with the ASC’s governance principles.
ENSURE THE ASC’S STANCE ON TECHNOLOGY SUPPORTS REGULATORY EXCELLENCE, OPERATIONAL RESILIENCE, AND A CULTURE OF INNOVATION INTERNALLY AND EXTERNALLY
We will continue to acquire and implement technology solutions that provide critical division-specific tools to enable and accelerate key regulatory and operational business processes. Where an appropriate business case exists, we will explore selectively internally developing technology solutions that do not currently exist, using appropriate prototype development, software development lifecycle and IT operations processes.