As part of its commitment to curbing administrative burdens, the Ontario Securities Commission (OSC) is adopting formal processes for lifting reps’ restrictions.
The OSC announced a couple of measures designed to reduce red tape — by setting out its process for removing conditions from reps’ registrations, and establishing a formal process for reactivating suspended fund reps.
Both actions were among the 100+ recommendations in the report from its burden reduction task force.
The OSC provided guidance on its process for removing supervisory conditions from a rep’s registration through an online portal.
“To support an expedited review, sponsoring firms are advised to submit certain information to staff with the initial application,” it said.
Additionally, the OSC has also formalized its process for reviewing applications to reactivate registration by fund reps coming off a suspension by the Mutual Fund Dealers Association of Canada (MFDA).
The regulator said that it will generally deploy an expedited review process that doesn’t re-examine the details of the MFDA’s disciplinary action. It aims to process these applications in five days.
According to its guidance, the OSC will propose requiring close supervision, typically for at a year, for reps coming off suspension.
The expedited review process is subject to certain eligibility requirements.
Among other things, reps must reapply within three months of the end of the suspension; they must have complied with other disciplinary sanctions, such as paying fines or passing required courses; and the application must not be false or incomplete.