On January 27, the Investment Industry Regulatory Organization of Canada released its annual consolidated compliance report for 2014/2015.
Key findings in the report are certain recurring and/or significant compliance deficiencies identified over the past year. The report, which also addresses key IIROC priorities for 2015 and results of recent targeted reviews and surveys, is intended to assist investment dealers in focusing their efforts to ensure compliance.
Recurring/significant registration deficiencies
The report identified a number of recurring or significant compliance deficiencies in 11 areas, including in respect of (i) the absence of written internal control policies; (ii) non-performance of minimum regulatory requirements in respect of internal controls; (iii) accounting, reporting and margin calculation errors; (iv) dealers not meeting minimum requirements relating to books and records; (v) operational issues; (vi) lack of agreements or effective supervision in respect of outsourcing; (vii) a lack of familiarity with best execution methodology; (viii) inadequate supervision of employee/agent accounts; (ix) a lack of adequate policies and procedures regarding outside business activities; (x) conflicts of interests policies and procedures and (xi) registration.
Recurring/significant registration deficiencies include (i) registration applications and changes of registration information; (ii) notices of termination of registered individuals and permitted individuals; and (iii) ownership changes and other dealer member filing requirements.Continue Reading...