The Ontario Securities Commission (OSC) says that it plans to start explaining to firms its reasons when its staff recommend that an individual’s registration should be rejected, suspended, or that it carry conditions.
Currently, when OSC staff recommends that a registration application should be refused, or that an individuals’ registration should be suspended, or approved with certain conditions attached, the individual will receive a letter outlining the recommendation, and the reasons for it. However, the firm is only told about the recommendation, not the reasons.
Now, the OSC has decided to start sending a copy of the reasons for these recommendations to the sponsoring firm, too, in an effort to improve transparency, and help firms comply with their registration obligations.
A notice in Thursday’s OSC Buletin indicates that OSC staff believe that this will, “promote the accuracy and completeness of information” that firms have about the individuals they sponsor, assisting them in fulfilling their obligations under the registration rules.
They also believe that investor protection will be enhanced “by communicating important information about individual registrants and applicants to the registered firms responsible under Ontario securities law for supervising these individuals.”