The Ontario Securities Commission (OSC) has launched a data-gathering exercise that will help determine which firms face compliance reviews by the regulator.
The OSC Tuesday issued a new risk assessment questionnaire that demands extensive information from registered firms about their operations. The 42-page questionnaire covers everything from the structure of firms to the type of the business they do, and how their KYC processes and commission structures work.
The regulator last carried out a similar exercise back in 2011, and it says that the information gathered through the process will be used by OSC staff to rank firms in terms of risk, and to select firms for its compliance reviews. This does not include firms that belong to self-regulatory organizations (SROs). Rather, the questionnaire has been sent to firms that are directly regulated by the OSC, including portfolio managers, investment fund managers, and exempt market dealers.
“This process is essential for gathering data from the firms we regulate, which in turn, informs our approach to compliance,” said Debra Foubert, director of compliance & registrant regulation at the OSC. “We use this data to make evidence-based decisions about which firms require further attention and oversight.”
The questionnaire is an interactive electronic form, which firms must complete and submit online. The deadline for completion is July 21.