BCN 2003/50 Dealers and Advisers under the BC Model - Regulatory Impact Analysis [BCN]

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Published: 2003-11-24

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RIA Dealers and Advisers

The British Columbia Securities Commission has published its analysis of the regulatory impact of the BC Model on dealers and advisers - Strong and Efficient Investor Protection: Dealers and Advisers under the BC Model - A Regulatory Impact Analysis.
The study has three main conclusions:

1. The BC Model would improve investor protection.

The BC Model’s emphasis on outcomes would help keep the compliance focus aligned with the interests of investors and markets. The firms in our study would take advantage of the flexibility the Model offers in designing procedures to re-allocate resources to more effective means of preventing and detecting misconduct. The outcomes mandated by the BC Model are broad enough that most new compliance and enforcement challenges can be dealt with faster than under the current legislation. The simulations conducted by Commission staff show that the BC Model provides a stronger foundation for effective compliance reviews and enforcement action.

2. The BC Model would have the intended result.

The dealers we interviewed concluded that they would know how to apply the Code of Conduct and the other outcomes-based rules contained in the BC Model. The BC Model allows firms to comply with all points of investor protection in the way that is most efficient for their business.

3. The BC Model would not impose a cost burden on industry.

Our work with participating firms indicates that implementing the BC Model would not increase ongoing compliance costs, nor would it entail significant transition costs. The BC Model’s simpler rules and less frequent rule changes would reduce ongoing compliance costs.

November 24, 2003



Brent W. Aitken
Vice Chair

This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website at www.bcsc.bc.ca in the Commission Documents database or the Historical Documents database.