Are you compliant? 9 regulation tips from the OSC

Advisors say they’re spending more than half of their time focusing on compliance, rather than on clients. Here are 10 tips to help you stay ahead of the curve and out of the radar of regulators.

May 17, 2013 | Last updated on May 17, 2013
2 min read
  • There’s a new team; the Registrant Conduct and Risk Analysis Team. It advises on misconduct charges and investigates possible cases. To this group, you’re considered guilty before innocent, and it has sent around 10% of cases to enforcement since its creation.
  • All case decisions will now be published for public viewing to increase transparency, whether requested to be heard or not.
  • Keep on top of your excess working capital. If you don’t, you may be in for a very uncomfortable conversation or visit from regulators—whether it’s only left unchecked for a few days or months.

    Read: Building the value of your biggest asset

  • Review your insurance regularly. If your AUM increase, make sure to also increase your insurance to protect your clients.

    Read: Buffer your business with sound insurance

  • The OSC says social media is not yet widely used, but its topping the lists of internal auditors, and quickly becoming popular with advisors and firms. Check out the compliance and regulatory rules surrounding its use, and ask yourself these 4 questions:
    • Are you maintaining records of your posts and communications?
    • Can you retrieve your records easily?
    • How do you supervise its use by employees?
    • Are you making any misleading claims when you post? Read: Let advisors speak their minds
  • Keep annual compliance reports on hand and in your records. They should be written accounts.
  • Is your job title misleading? Or the titles of any products or services you offer? Don’t confuse consumers, or lead them to think you hold more designations than you do.

    Read: The decade of designations (2008)

  • How do provide valuation data for different funds and securities, and for illiquid investments? This is a major focus of the OSC, and it matters if investors are given accurate data on their investments.
  • ETFs are becoming a hot product and you need to have information for your clients on the different types; there are index funds, active funds, and leveraged funds, for example. Regulators are trying to create an even playing field for all of these, as well as clear rules and guidelines regarding their use.

Read: Active or passive? Helps clients choose their style and Buffet is doing fine without an ETF

Some advisors say they’re now spending more than half of their time focusing on compliance, and making sure they’re up to date on changing regulatory guidelines.

The question is: Does this leave you enough time to focus on clients and their needs?

Meetings and check-ins help you maintain your relationships, so it’s crucial to check compliance tasks off of your to-do list quickly. Donna Spagnola, a partner at BLG’s Toronto Office who specializes in securities, went over the most important regulatory concerns of investment managers at the firm’s Investment Management Breakfast Session today.

Here are 9 tips and points she offered to help make sure you’re compliant:

  • There’s a new team; the Registrant Conduct and Risk Analysis Team. It advises on misconduct charges and investigates possible cases. To this group, you’re considered guilty before innocent, and it has sent around 10% of cases to enforcement since its creation.
  • All case decisions will now be published for public viewing to increase transparency, whether requested to be heard or not.
  • Keep on top of your excess working capital. If you don’t, you may be in for a very uncomfortable conversation or visit from regulators—whether it’s only left unchecked for a few days or months.

    Read: Building the value of your biggest asset

  • Review your insurance regularly. If your AUM increase, make sure to also increase your insurance to protect your clients.

    Read: Buffer your business with sound insurance

  • The OSC says social media is not yet widely used, but its topping the lists of internal auditors, and quickly becoming popular with advisors and firms. Check out the compliance and regulatory rules surrounding its use, and ask yourself these 4 questions:
    • Are you maintaining records of your posts and communications?
    • Can you retrieve your records easily?
    • How do you supervise its use by employees?
    • Are you making any misleading claims when you post? Read: Let advisors speak their minds
  • Keep annual compliance reports on hand and in your records. They should be written accounts.
  • Is your job title misleading? Or the titles of any products or services you offer? Don’t confuse consumers, or lead them to think you hold more designations than you do.

    Read: The decade of designations (2008)

  • How do provide valuation data for different funds and securities, and for illiquid investments? This is a major focus of the OSC, and it matters if investors are given accurate data on their investments.
  • ETFs are becoming a hot product and you need to have information for your clients on the different types; there are index funds, active funds, and leveraged funds, for example. Regulators are trying to create an even playing field for all of these, as well as clear rules and guidelines regarding their use.

Read: Active or passive? Helps clients choose their style and Buffet is doing fine without an ETF

Some advisors say they’re now spending more than half of their time focusing on compliance, and making sure they’re up to date on changing regulatory guidelines.

The question is: Does this leave you enough time to focus on clients and their needs?

Meetings and check-ins help you maintain your relationships, so it’s crucial to check compliance tasks off of your to-do list quickly. Donna Spagnola, a partner at BLG’s Toronto Office who specializes in securities, went over the most important regulatory concerns of investment managers at the firm’s Investment Management Breakfast Session today.

Here are 9 tips and points she offered to help make sure you’re compliant:

  • There’s a new team; the Registrant Conduct and Risk Analysis Team. It advises on misconduct charges and investigates possible cases. To this group, you’re considered guilty before innocent, and it has sent around 10% of cases to enforcement since its creation.
  • All case decisions will now be published for public viewing to increase transparency, whether requested to be heard or not.
  • Keep on top of your excess working capital. If you don’t, you may be in for a very uncomfortable conversation or visit from regulators—whether it’s only left unchecked for a few days or months.

    Read: Building the value of your biggest asset

  • Review your insurance regularly. If your AUM increase, make sure to also increase your insurance to protect your clients.

    Read: Buffer your business with sound insurance

  • The OSC says social media is not yet widely used, but its topping the lists of internal auditors, and quickly becoming popular with advisors and firms. Check out the compliance and regulatory rules surrounding its use, and ask yourself these 4 questions:
    • Are you maintaining records of your posts and communications?
    • Can you retrieve your records easily?
    • How do you supervise its use by employees?
    • Are you making any misleading claims when you post? Read: Let advisors speak their minds
  • Keep annual compliance reports on hand and in your records. They should be written accounts.
  • Is your job title misleading? Or the titles of any products or services you offer? Don’t confuse consumers, or lead them to think you hold more designations than you do.

    Read: The decade of designations (2008)

  • How do provide valuation data for different funds and securities, and for illiquid investments? This is a major focus of the OSC, and it matters if investors are given accurate data on their investments.
  • ETFs are becoming a hot product and you need to have information for your clients on the different types; there are index funds, active funds, and leveraged funds, for example. Regulators are trying to create an even playing field for all of these, as well as clear rules and guidelines regarding their use.

Read: Active or passive? Helps clients choose their style and Buffet is doing fine without an ETF