Two recent compliance-related matters affect advisers, dealers and/or fund managers.
For ONTARIO REGISTERED ADVISERS and FUND MANAGERS:
2008 Ontario Securities Commission Adviser and Fund Manager Compliance Risk Assessment Questionnaire
The Compliance team of the Ontario Securities Commission uses a risk assessment model for advisers and fund managers to assist staff in focusing their compliance field review efforts in the most effective and efficient manner. A critical component of the risk assessment model is information from and about registrants.
The Commission has asked advisers in the categories of investment counsel and portfolio managers (ICPMs) and fund managers to complete a new risk assessment questionnaire with information that is current as at DECEMBER 31, 2007. These questionnaires are similar to the questionnaires circulated in 2004. If your firm is registered in Ontario as an ICPM and performs fund manager activities, you are required to complete both the ICPM and fund manager questionnaires, and you should have received two separate emails from the Commission already. All information provided will be used by Commission staff for regulatory purposes only and the Commission indicates that it has taken all measures to ensure that the data is secure and all information submitted remains confidential.
As with the 2004 risk assessment questionnaires, your usual lawyer in BLG’s Investment Management Group can assist you in the completion of these questionnaires.
The completed questionnaires must be submitted by March 7, 2008, by following the Commission’s instructions. The Commission’s user guide for these questionnaires can be viewed by clicking here.
For ALL REGISTRANTS:
Reporting Requirements under the Special Economic Measures (Burma) Regulations
The Canadian federal government recently published new regulations that affect advisers and dealers authorized to do business in Canada. The Special Economic Measures (Burma) Regulations (the Burma Regulations), which came into effect on December 26, 2007, impose new review and reporting requirements on all entities authorized to act as ICPMs or dealers in Canada. The Burma Regulations contain prohibitions on dealing, directly or indirectly, with any designated person, including with respect to the provision of financial services.
Effective immediately, entities operating in any Canadian jurisdiction as advisers or dealers have a duty to determine, on a continuing basis, whether they are in possession or control of property owned or controlled by or on behalf of a "designated person" listed in the Schedule to the Burma Regulations. A list of designated persons can be found here.
Please note that the Burma Regulations do not require you to report on the results of the continuous searching and reporting obligations. You need only notify the relevant authorities where you are in possession of any property held for a designated person, or you have any information about a transaction or proposed transaction involving a designated person.