Several Canadian self regulatory orgainations (SROs) have issued a joint notice in order to explain their expectations about responsibility for compliance at firms.

The purpose of the notice, issued by Market Regulation Services Inc., the Investment Dealers Association of Canada, the Mutual Fund Dealers Association of Canada and the Bourse de Montréal, is to provide firms with the SROs’ expectations of the compliance function at firms and the role, responsibility and accountability of the firm, the board of directors, management, compliance departments and compliance officers.

The notice explains that the responsibility for compliance belongs to the firm generally: the board of directors, management, supervisors and those fulfilling the compliance function. “Compliance should not be viewed as an isolated activity of the compliance department but as an integral part of a member’s general business activities,” it says. “Within that general framework, it is the responsibility of the board of directors, management and supervisors to consider and implement the advice from those performing a compliance function.”

It notes that the SROs have issued notices and bulletins in the past that address many of these matters, and there are specific SRO rules that deal with supervisory and compliance responsibilities. “This notice should be read in conjunction with those regulatory instruments,” it says.