BCSC releases 2017 Compliance Report Card
Jun 28, 2017
On June 28, 2017, the British Columbia Securities Commission (BCSC) released its 2017 Compliance Report Card. The annual report card summarizes the findings from the BCSC's compliance reviews of B.C.-based portfolio managers, investment fund managers, and exempt market dealers over the last fiscal year.
At March 31, 2017, there were 116 firms directly registered with the BCSC. In its reviews, the BCSC found the following positive practices among firms with good cultures of compliance: reviewing guidance from CSA Staff Notices to take timely proactive corrective actions; consulting with BCSC relationship managers to resolves issues before they become compliance deficiencies in a compliance exam; providing meaningful annual chief compliance officer (CCO) reports to their firm's board; and considering how changes to business, staff, or revenue may affect compliance programs, and updating policies and procedures manuals appropriately
The report also noted that in the 26 compliance reviews conducted last year, 171 total compliance deficiencies were found, averaging 6.58 deficiencies per review. The top areas for deficiencies were: client statements and reporting; registration administration; know-your-client and suitability; policies and procedures; disclosures; and advertising, marketing, and holding out
The top deficiency areas represent approximately 59 per cent of all compliance deficiencies found.
Refer to the press release and 2017 Compliance Report Card on the BCSC’s website.