OSC TestLab Report 2022: How can RegTech transform the investing experience?

The OSC Innovation Office’s report summarizing the findings of their debut TestLab program is full of significant insights regarding the future of RegTech and how both regulators and service providers can work together to ensure that Canada remains competitive in the global finance economy. Most relevant to LockDocs’ objective as TestLab participants and our overall mission is the conclusion that RegTech can support firms and their investors through automation - streamlining data sharing, improving efficiency, and cultivating better advisor-client communications. 

The report sheds light on the potential of RegTech solutions to address the challenges faced by registered firms and advisors in collecting and maintaining crucial client information while ensuring regulatory compliance. The majority of firms still rely on manual processes, presenting an opportunity for innovation. 

Underscored is the significant need for automation as a means to minimize errors and improve efficiency in compliance processes. Digital investment solutions offer convenience, speed, and accuracy - reducing the need for manual follow-up and enabling clients to update their information easily. One particularly notable finding is the success of smart forms in streamlining form completion. By automatically populating fields and providing clients with prior responses for comparison, smart forms not only enhance accuracy but also expedite the form completion process for a frictionless client experience. This functionality garnered positive feedback from test participants, as it reduces manual data entry and mitigates the risk of errors. 

These technological advancements not only foster more efficient workflows but also enable advisors to engage clients effectively. The report emphasizes that even simple solutions can have a significant impact when they alleviate friction for both registrants and clients. Ultimately, the key to success lies in RegTech solutions seamlessly integrating with existing systems and offering interoperability across diverse platforms while meeting regulatory compliance requirements. By focusing on simple yet impactful features that reduce friction, streamline workflows, and integrate with other systems, RegTech solutions are poised to transform the industry, offering benefits that go beyond compliance and ultimately deliver better outcomes for both registrants and clients. 

Learn more about these findings here or click here to read the full report.