IIROC to focus on KYC, risk management

The Investment Industry Regulatory Organization of Canada (IIROC) today published its Annual Consolidated Compliance Report, which outlines its key examination priorities for the coming year.

Areas of focus going into 2013 include KYC documentation, non-arm’s length investment products, capital and liquidity risk management, outsourcing and electronic trading controls.

Read: There’s no “perfect form” for KYC and Firms not meeting KYC requirements

It also tackles activities such as outsourcing, leveraging and manipulative and deceptive trading practices.

The report also says, “IIROC has also implemented a top-down approach in financial and operations compliance, as well as business conduct compliance.”

It adds the regulator has developed integrated examinations to achieve greater efficiency and effectiveness. IIROC’s main target is high-risk firms, and IIROC wants a complete picture of every dealers’ business activities.

Read: Where compliance meets risk

“Building a culture of compliance is a strategic priority for IIROC,” says Susan Wolburgh Jenah, president and CEO.

Though the report recognizes that current economic challenges limit the resources of advisors, it claims the responsibilities of sealers to have strong and effective compliance and risk control systems in place are stringent.

It says, “Many firms are now reviewing their current business models, and are looking for ways to effectively reduce costs or alter business lines to meet the changing business environment.”

“We continue to enhance our compliance and examination program to reflect changes in market structure, business risk, investment products, demographics and identified corporate priorities,” says Rosemary Chan, IIROC’s senior vice-president, member compliance, general counsel and corporate secretary, at the conference.

Staff

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