for Financial Filings:
Carrot or the Stick?
Read between the lines of the latest tome from
the Ontario Securities Commissions (OSC) and its’
message is clear: “Take a bite out of the carrot we’re
offering, or risk the sting of the stick we carry.”
The carrot being dangled in front of Dealers,
Portfolio Managers and Investment Fund Managers
is a new emphasis on what the OSC calls outreach:
online information, special seminars, education
programs and a whole lot of cautionary tales now
available in greater amounts than ever before.
The stick, of course, is the array of penalties at
the OSC’s disposal should you be found guilty of the
most common, or most egregious, filing deficiencies.
This warning - or offering - is contained in the rather
thick 2013 Annual Summary Report put out by the OSC,
which now directly oversees some 1,300 firms that trade
or advise in securities or commodity futures.
This includes investment fund managers, exempt
market dealers, portfolio managers and scholarship
plan dealers. While the OSC also registers the 115
mutual fund dealers and 200 investment dealers these
firms are principally overseen by their respective
self-regulatory organizations being the Mutual Fund
Dealers Association (MFDA) and of the Investment
Industry Regulatory Organization of Canada (IIROC).
The OSC report is not exactly light bedtime
reading. But it suggests you might avoid some
sleepless nights if you take advantage of the outreach
resources the OSC is now offering which include:
• A “registrant outreach” web page designed to
enhance compliance awareness.
• Outreach seminars that convey practical knowledge
and interpretations of financial reporting and
regulatory capital matters, like the OSC seminars
that were well attended last September.
• A new Registrant Resources Section of the OSC
designed to provide easy, centralized access to
the latest compliance materials.
CPA, CA, CMC
Private Capital Markets
Association of Canada
By Stephen Warden