Regulators have also intensi;ed their
oversight activities, and the exempt
market is high on their list. A recent
Ontario Securities Commission (OSC)
sweep of EMDs found major compliance de;ciencies in critical areas,
including proper collection, documentation and updating of Know-Your-Client
(KYC) and Know-Your-Product (KYP)
information.1 Failure to meet standards
in these and other key areas can result in
signi;cant penalties and severe reputational damage.
With the avalanche of new regulations
and the vigour with which the securities
commissions are enforcing them, more
than ever EMDs must treat compliance
as completely non-negotiable. But
EMDs should see more in the new
regulatory environment than a series of
time-consuming and costly requirements. As is often the case, what appears
to be a burden that could hamper your
business is actually an opportunity to
enhance it – provided you respond
appropriately to your new circumstances.
Technology can turn the barrage of new
• Help you attract the industry’s top
regulatory requirements into an oppor-
tunity to di;erentiate yourself from your
peers. Technological compliance
• Enable you to meet your regulatory
requirements with ease;
dealer representatives (DRs); and
• Allow your DRs to spend more time
building client relationships.
Recordkeeping, KYC and KYP
A cutting-edge, user-friendly platform
that uni;es front- and back-o;ce
functions within a single interface makes
recordkeeping and compliance de;ciencies virtually impossible.
KYC-related missteps will be a thing of
the past. Clients with incomplete KYC
information will be automatically
prevented from engaging in trades.
Clients whose completed KYC pro;les
do not match the requirements for a
speci;c trade will also be automatically
disquali;ed. “With the right technology,
mis-selling becomes essentially impos-
sible, because the platform’s automated
controls do not allow a deal to close
unless every form and client quali;cation
is veri;ably in place,” says Emmanuel
Gonnet, Vice-President of Product
Management at UNIVERIS® in Toronto.
;e same holds true for KYP require-
ments. DRs are expected to have docu-
mentary evidence of their knowledge of
the features and risks of the products they
sell. Recording this evidence on an easily
misplaced sheet of paper, or on a
di;cult-to-locate spreadsheet is a recipe
for recordkeeping mishaps that could lead
to regulatory infractions and potential
A properly con;gured technological
solution will feature automated KYP.
DRs will be automatically prevented
from facilitating deals unless their DR
pro;les show successful completion of all
necessary KYP requirements. And if the
regulators pay your ;rm a visit to ensure
your KYP processes are in order, a few
clicks of the mouse is all that will be
needed to provide these regulators with a
clear record of ;awless KYP compliance.
“With the right technology, mis-selling becomes essentially impossible,
because the platform’s automated
controls do not allow a deal to close
unless every form and client quali;cation is veri;ably in place.”
Attracting DRs and investors
New regulatory requirements mean more
forms for DRs to keep track of, adding to
the compliance burden in a business that
is already document-heavy. “Managing
the document ;ow with anything less
than the most advanced digital platform
is a daunting and extremely time-
consuming task,” explains Gonnet.
A uni;ed technological solution not only
means DRs spend less time on compliance, it also brings them the peace of
mind of knowing that built-in controls
add a virtually foolproof backstop against
inadvertent KYC, KYP and other errors.
“In an environment where EMDs are
competing ;ercely for the best DR talent,
o;ering potential hires a superior compliance platform is a clear di;erentiator,” says
Gonnet. And the better your DRs, the
better your business.
A uni;ed technological platform also
provides a superior experience for your
;e digital revolution has left no stone
unturned, and this includes the ;nancial
services industry. Investors of all ages –
from millennials to those in their 70s and
beyond – expect their DRs to be mobile.
“Most investors would much rather work
with a DR who has every piece of client
information in a visually intuitive, tablet-or laptop-based application. With a
cutting-edge technological platform like
this, DRs can set themselves apart by
being wherever their clients need them,
when they need them,” explains Gonnet.
The Time is Now
;e digital evolution cannot be reversed,
and it’s only a matter of time before
EMDs view technological compliance
solutions as a baseline requirement for
business success. Getting ahead of the
curve and transitioning to a comprehensive, fully uni;ed platform not only
makes it easy to keep the regulators
happy, it enables you to better di;erentiate your ;rm in a highly competitive
For more information on unified technological
solutions for EMDs, visit www.flexemd.com or
call your UNIVERIS ® representative today.
1Ontario Securities Commission, Annual Summary
Report for Dealers, Advisers and Investment Fund
Managers (OSC Sta; Notice 33-747), July 21, 2016.