Compliance

Compliance Reviews

MSC compliance staff conducts compliance reviews of advisers, dealers and investment fund managers registered in Manitoba. A firm may be selected for review as part of the normal review cycle, or based on its risk profile. A registered firm may also be sleected for review based on a referral from another department within the MSC or another regulator, or if complaints are received about the firm. Reviews may be conducted on-site, which encompass the major functional areas of the firm's operations, or occur as targeted reviews, where a particular issue is focused on. Compliance staff also conduct condensed reviews of new registrants within their first year of registration.

Compliance staff may also conduct reviews of investment dealers and mutual fund dealers. If a firm is registered in multiple categories, it may be subject to compliance reviews by both the MSC and its applicable SRO.

If a registered firm is selected for a compliance review, it will typically receive advance notification and be provided with a list of books and records that MSC staff will need to examine during the review. If the review is to be conducted on-site, MSC staff will speak with the firm’s senior management and other key employees. Once the on-site work is complete, compliance staff return to their office to complete the balance of the review of a firm's books and records. The length of time for the off-site work will depend on the complexity of the firm’s operations and the nature of the findings.

Once the review is complete, senior management is provided with a Schedule of Findings, which outlines the deficiencies found during the review and asks the firm to indicate the course of action that they will take to correct any noted deficiencies. If the firm addresses all issues in a satisfactory manner, the file will be closed. If the firm does not adequately address the deficiencies, the MSC may take further action, such as increased oversight of the firm, conducting a follow-up review, imposing terms and conditions, or referring the matter to enforcement staff. These steps may also be taken immediately if a finding is particularly serious.