Ontario Securities Commission (OSC) staff have begun notifying registrants that they will receive a risk assessment questionnaire (RAQ) on April 15. The OSC uses the information collected from these bi-annual questionnaires as part of its risk-based supervision program. Registrants must submit the completed questionnaire to the OSC by May 27, 2020, after their Ultimate Designated Person (UDP) has certified the contents as complete, accurate, free from any misstatements and not misleading in any respect. The RAQ will ask for information for the period ending December 31, 2019.
The OSC is making some changes to the RAQ process and questions. Some of these changes are part of its burden reduction initiative. For example:
- For firms that completed the 2018 RAQ, some questions in the 2020 RAQ will be pre-populated with the firm’s 2018 answers (which of course, should be reviewed and revised if necessary).
- Some questions have been deleted from the 2020 RAQ (e.g. Question G18 on other business activities).
Changes to the RAQ process include the following:
- Authentication to enhance data security: On April 15, CCOs will receive an email from the OSC with a link asking them to create an account that is unique to the firm in the OSC’s system. Once the account is created, the CCO will be granted access to the 2020 RAQ through this account.
- Fund Form Separated from the RAQ: The Prospectus-Exempt Fund Form, which used to be sent to investment fund managers who manage prospectus-exempt funds at the same time as the RAQ, has been removed from the 2020 RAQ. Going forward, it will be sent separately from the RAQ.
We encourage registrants to start planning for this exercise now by allocating resources to gather the needed information and draft responses, as well as scheduling time with key individuals including the UDP to review and sign off on the completed questionnaire. AUM Law has had extensive experience helping firms prepare their RAQs. If you would like us to help you complete this year’s RAQ, please contact us for a fixed-fee quote.
January 31, 2020