2018 Compliance Resolutions in Action

March 1, 2018 Jocelyn Chan

IIROC and MFDA have published their compliance resolutions. What are your priorities?

As it relates to RegTech in Canada, regulators (MFDA and IIROC) have published their annual priorities for 2018. Dealers and reps will be subject to added scrutiny on various subjects.

The MFDA will be focusing on concentration suitability and suitability for senior investors, as well as revisiting fee disclosure and reporting. Over-charging will also be a key subject where processes and algorithms will have to identify clearly client eligibility for optimized MERs, among other things. IIROC will also focus on pre-trade disclosure of charges and appropriate time-horizon KYC. Work-related to conflict of interest will also continue. Both regulators will have an emphasis on CyberSecurity and will ensure compliance with all CRM2 rules.

While the MFDA and IIROC priorities are worth reading in detail, there is no doubt in our minds that regulations are ultimately moving toward a client-best interest philosophy.

This is why the near future of RegTech will remain a highly computer-aided environment where algorithms will crunch numbers to derive a best personalized portfolio for each investor, using deep KYC, KYP and KYA data. What’s truly going to be new is that algorithms will go from hindsights to foresights, and will actually become accountable for any decision making, turning computers into reps and compliance officers digital assistant. While many would use the term AI (Artificial Intelligence), we want to refrain from jumping on that term, as most of that complex logic does not call upon machine learning. Univeris clients’ have been leveraging our algorithms for decades.

In terms of compliance resolutions, Univeris will continue to refine its RegTech APIs and full expert enterprise wealth management system to address all pre and post trade supervision activities and ensure dealers can leverage a cost optimized GRC framework.

To learn more about the MFDA and IIROC 2018 priorities, visit the sites below.

MFDA Priorities
IIROC Priorities

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