IIROC is signalling a get-even-tougher approach for 2014, with its consolidation compliance report outlining that kind of increased vigilance.
The Investment Industry Regulatory Organization of Canada has now published its Annual Consolidated Compliance Report outlining "key examination and surveillance priorities" for the coming this new fiscal year.
That report is also highlighting key findings the regulator has already formed as well as results from its surveys and targeted reviews from the previous year. But it's the organization's areas of focus for 2014 that are garnering the most attention.
"We are committed to maintaining a competitive landscape for firms of diverse sizes and business models and the report reinforces the importance of strong day-to-day compliance, supervision and risk management practices of IIROC-regulated firms across Canada," said Wendy Rudd, IIROC's senior VP of market regulation and policy.
IIROC is pointing to its risk-based approach in areas where there is the greatest potential to impact investor protection. Over the next year, IIROC's exam teams will focus on helping firms identify, manage and mitigate potential risk.
Upcoming areas of concentration include implementation of the Client Relationship Model, suitability and "know your client" obligations, outsourcing arrangements, and electronic trading rule requirements.
"This report underscores our commitment to transparency and is an important resource that members can draw upon to strengthen oversight and compliance," said Rosemary Chan, IIROC's senior VP of member compliance.
IIROC's compliance program reflects changes in market structure, business risk, investment products, demographics, and identified corporate priorities.
For a comprehensive look at the full report, click HERE.