Weekly Wrap: The Regulator Beat

Weekly Wrap: The Regulator Beat

Weekly Wrap: The Regulator Beat

CSA extends deadline on OTC trade reporting
The Canadian Securities Administrators (CSA) has extended the deadline for OTC derivatives trade reporting from July to October 31, 2014 for clearing agencies and dealers, and from September 2014 to June 30, 2015 for all other OTC derivatives market participants. Regulators say the delay is because trade repository infrastructure is not yet in place to handle all OTC derivative asset classes. The extension will give market participants time to update their systems and develop adequate reporting infrastructure, the CSA says.

Children's Scholarship fund settles with OSC
The Ontario Securities Commission (OSC) has approved a settlement agreement with scholarship plan dealer, Children's Education Funds Inc. (CEFI) over compliance deficiencies. The CEFI admitted that its compliance system did not meet regulatory requirements, including deficiencies in its KYC and suitability procedures
. Under the settlement, CEFI must report to the OSC improvement efforts to its compliance system - including revised policies, procedures and internal controls - by June 3, 2015. The firms says it has spent about $700,000 to make the necessary improvements, which have been underway since 2012 

IIROC dishes out $150K to registered rep
The Investment Industry Regulatory Organization of Canada (IIROC) has fined a registered representative $150,000, including disgorgement of $137,000 in commissions, for failing to use due diligence and making unsuitable and unauthorized trades. Ravindra Suppal - who was an advisor and branch manager with First Financial Securities Inc. in Winnipeg, at the time - failed to adhere to the "know your client" obligation between June 2005 and April 2010 regarding an account held by the Chemawawin First Nation Development Trust, according to IIROC. Suppal has been suspended from IIROC registration for a year, must re-write the Conduct and Practices exam and cannot work as a branch or compliance manager with a member firm for three years. He must also pay $20,000 in costs. Suppal is currently a registered rep and supervisor with Portfolio Strategies Securities Inc.

AMF expands victim-support services
The Autorité des marchés financiers (AMF) has signed an agreement with Montérégie, Côte-Nord and Outaouais Crime Victims Assistance Centres (CAVAC), which develops protocol to support for victims of a financial crime, allowing AMF staff to refer victims directly to CAVAC in regions that are under scrutiny. The services are free and confidential, and are available to victims regardless of whether the perpetrator has been identified, apprehended, prosecuted or convicted.

Related Articles:

Weekly Wrap: The Regulator Beat

Weekly Wrap: The Regulator Beat