The OSC has issued the results of the compliance reviews conducted by its compliance and registrant regulation branch over the past year.
A full text of OSC Staff Notice 33-745: Compliance and Registrant Regulation- Annual Summary Report for Dealers, Advisors and Investment Fund Managers can be found here.
With respect to registration, it reviews various trends including pre-registration reviews, suggested practices for such reviews, conflicts of interests, outside business activities, individual registration applications and proficiency requirements.
With respect to compliance reviews, general outcomes of reviews in all registration categories are provided. They show an increase from last year in enhanced compliance, the imposition of terms and conditions on registration, the surrender or suspension of registration and referrals to enforcement.
Also, with respect to compliance reviews, current trends in deficiencies and acceptable practices are provided. These include non-compliance with KYC, KYP, other suitability and accredited investor requirements. Repeat and common deficiencies are also listed with "inadequate compliance system and UDP and CCO not meeting their responsibilities" topping such list.
Exempt market dealers have some prominence in the review. The OSC continues to have "significant concern" with EMDs that trade in or recommend related party products. EMD reviews are described as continuing to focus on areas found problematic in recent years. These include adequate compliance systems, identifying and responding to conflicts of interests, suitability, product review and fair sales practices.
PMs and IMFs are also each reviewed in separate sections in this report.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
