CALGARY – May 10, 2017 – The Alberta Securities Commission (ASC) today issued the results of a recently completed focused compliance review of exempt market dealers (EMDs) in Alberta whose principal regulator is the ASC (the Sweep). The purpose of the Sweep was to determine if registrants are compliant with Alberta securities laws.
The ASC completed 66 reviews of Alberta-based EMDs, which involved examining material aspects of the client relationship for compliance with regulatory requirements, at both the firm and individual registrant levels. Areas reviewed included compliance systems, know-your-client, know-your-product, suitability, sales practices and marketing, conflicts of interest, relationship disclosure information and client reporting.
While a number of firms achieved a high level of compliance or were at least generally compliant, the ASC identified deficiencies in compliance with regulatory obligations in all areas tested. After each firm compliance review, a report was issued outlining areas for improvement. Outcomes ranged from companies that voluntarily improved compliance systems to registration termination. Detailed results of the sweep can be found in ASC Notice 33-705 Exempt Market Dealer Sweep.
“The Notice is intended to provide guidance to assist firms in complying with their regulatory obligations and includes both suggested practices and unacceptable practices,” said Lynn Tsutsumi, Director, Market Regulation. "We strongly encourage registrants to use the Notice as a self-assessment tool to enhance their compliance with regulatory obligations.”
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
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