BCSC releases 2017 Compliance Report Card
Vancouver - The British Columbia Securities Commission (BCSC) today released its 2017 Compliance Report Card. The annual report card summarizes the findings from the BCSC's compliance reviews of B.C.-based portfolio managers, investment fund managers, and exempt market dealers over the last fiscal year.
"Our goal is to foster a culture of compliance with our market participants," said Mark Wang, Director of Capital Markets Regulation at the BCSC. "This report is intended to help compliance professionals improve their compliance programs by highlighting problem areas we saw."
At March 31, 2017, there were 116 firms directly registered with the BCSC. In its reviews, the BCSC found the following positive practices among firms with good cultures of compliance:
- Reviewing guidance from CSA Staff Notices to take timely proactive corrective actions
- Consulting with BCSC relationship managers to resolves issues before they become compliance deficiencies in a compliance exam
- Providing meaningful annual chief compliance officer (CCO) reports to their firm's board
- Considering how changes to business, staff, or revenue may affect compliance programs, and updating policies and procedures manuals appropriately
The report also noted that in the 26 compliance reviews conducted last year, 171 total compliance deficiencies were found, averaging 6.58 deficiencies per review. The top areas for deficiencies were:
- client statements and reporting
- registration administration
- know-your-client and suitability
- policies and procedures
- advertising, marketing, and holding out
The top deficiency areas represent approximately 59 per cent of all compliance deficiencies found.
"We will continue to focus our compliance reviews on these top deficiency areas for the year ahead," said Wang. "We recommend that CCOs review this report card, as well as ongoing guidance from CSA Staff Notices, to ensure their compliance programs meet regulatory requirements and to reduce the likelihood of adverse findings in a BCSC compliance review."
More detailed information can be found in the 2017 Annual Compliance Report Card, now available on the BCSC website.
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
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