The Canadian Securities Administrators and self-regulatory organizations (SROs) are focusing to a greater extent than ever before on compliance by registrants with securities legislation. Given the concentration of securities registrant firms based in Ontario, the OSC has been front and centre in shaping the "new normal" for registrants. The OSC now sends regular email blasts to Chief Compliance Officers and Ultimate Designated Persons to remind registrants of their compliance obligations or to inform registrants of new initiatives of the OSC's Compliance and Registrant Regulation Branch (C &RR Branch). These email blasts are in addition to the published staff notices.
A recent email blast outlined the OSC's concerns about inadequate compliance systems and CCOs not adequately performing their responsibilities. This email can be seen as a shot across the bow, with a clear message that the OSC will take regulatory action against firms when considered appropriate. The OSC has little patience for registrants who do not demonstrate appropriate compliance culture, particularly where staff come across deficiencies in areas that have been highlighted for years as areas of concern.
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