The Ontario Securities Commission (OSC) has issued a temporary order requiring a scholarship plan dealer, and a plan’s investment fund manager, to beef up their compliance systems.

The OSC issued a temporary order Thursday involving Global RESP Corp., which distributes the Global Educational Plan Trust, and Global Growth Assets Inc., which is the plan’s manager, requiring them to comply with terms and conditions imposed on their registration. The order indicates that they have agreed to the conditions being imposed.

Those conditions include retaining independent compliance consultants, approved by the OSC, to help them develop and implement plans to strengthen their compliance systems and rectify deficiencies uncovered by the OSC in a compliance review that was carried out in the summer of 2011.

Global RESP also has to retain an independent monitor before it can take any new clients, which will contact new clients to confirm the accuracy of KYC information, to ensure that the investment is suitable, and that they understand the fee structure. And, if the monitor finds that an investment is unsuitable it will be unwound at no cost. It also can’t open any new branches or add any reps until the compliance plan has been fully implemented.

The order expires in 15 days unless it is extended by the commission and there is to be a hearing on August 10 to provide the commission with an update.