The Investment Industry Regulatory Organization of Canada is reminding investment dealers not to sacrifice their compliance efforts as they cut costs in response to the economic and market downturns.

IIROC points out in a guidance note to its members issued on Friday that amid the challenging market conditions, “The need for an effective compliance, supervision and risk management program is more critical than ever.

“As dealer members focus on reducing expenses and in doing so consider head count reductions within the organization, it is important to ensure that an effective compliance program is maintained,” the self-regulatory organization says, adding that an effective compliance program is the only way firms can meet their regulatory responsibilities.

“While firms maintain the discretion to determine how compliance and supervisory controls are structured within the firm, IIROC expects firms to carefully consider the impact of headcount reductions in compliance and other control function areas, to determine whether they are adequate for the business,” it says.

“Dealer members are reminded of their regulatory obligations to maintain an effective compliance regime when planning and undertaking restructuring efforts to contain and/or reduce overhead costs. Ensuring that your firm’s compliance program is adequately funded and staffed, and supported and monitored by senior management, is integral to ensuring its effectiveness,” it advises.