The Ontario Securities Commission (OSC), Canada's largest and most influential securities regulator, continues to find serious compliance deficiencies among dealers, advisors, and fund managers. Non-compliance trends include broken compliance systems, client relationship problems, conflicts of interest, and inadequate disclosure, according to the OSC's annual compliance report (PDF), released last week. In Part 2 of this series, Thomson Reuters Accelus will provide a detailed summary of the compliance deficiencies affecting exempt market dealers (EMDs) in Ontario, as well as the remediation measures recommended by the OSC. The compliance issues affecting EMDs relate to conflicts of interest, risk disclosure, suitability, and misuse of client funds. In Canada, EMDs may act as dealers or underwriters for any securities whose issuance does not require a prospectus, known as prospectus exempt securities. They may also deal in any securities, including investment funds, which are prospectus
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