The Joint Forum of Financial Market Regulators discussed artificial intelligence and politics during its recently concluded annual general meeting.
Canadian securities regulators spoke on the Staff Notice and Consultation 11-348 Applicability of Canadian Securities Laws and the use of Artificial Intelligence Systems in Capital Markets, which clarified the application of securities legislation to AI system use by market participants. Input was sought on AI systems’ evolving role and possible changes to oversight and regulation given these advancements. Questions were also posed regarding AI system use in capital markets.
“Regulators recognize that market participants are seeking clarity on the responsible use of AI systems to ensure Canadian capital markets remain competitive and secure,” said Stan Magidson, Canadian Securities Administrators chair and Alberta Securities Commission chair and CEO, in a statement. “The CSA consultation was an important step to support responsible innovation that benefits investors and market participants, while addressing the risks associated with the use of these rapidly evolving systems.”
John Parisella, former chief of staff to Quebec Premiers Robert Bourassa and Daniel Johnson Jr., was the meeting’s keynote speaker, discussing the current global political context based on his domestic and international politics experience.
The following recently appointed leaders were also welcomed to the forum:
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Tolga Yalkin - chief executive officer of the British Columbia Financial Services Authority (January 13)
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Dexter John - chief executive officer of the Financial Services Regulatory Authority of Ontario (March 1)
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Loyola Power - superintendent of Securities, Newfoundland and Labrador (December 31, 2024)
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Valerie Seager - chair and CEO of the Nova Scotia Securities Commission (February 17)
New members were recognized by Joint Forum chair Huston Loke, who is executive vice president of Market Conduct, FSRA and Canadian Council of Insurance Regulators chair. Angela Mazerolle, vice-president of regulatory operations at the Financial and Consumer Services Commission of New Brunswick and Canadian Association of Pension Supervisory Authorities chair, said that the AGM “reinforced the value of the Joint Forum and the important role regulators play in strengthening the Canadian regulatory and supervisory framework. Working together, we can achieve efficiency and effectiveness across the industries we oversee while responding to the emerging issues we encounter.”
“The Joint Forum represents an invaluable opportunity for collaboration among financial service regulators, including discussion of emerging issues, which is especially important during this period of economic uncertainty for Canadians,” Loke said in a statement.
The Joint Forum includes the members of CCIR, CSA, and CAPSA, along with representatives from the Canadian Insurance Services Regulatory Organizations and the Mortgage Brokers’ Council of Canada.