28 August 2019 13:30
Photo : Freepik
The canadian securities administrators (CSA) published a notice to guide the listed companies, where an organization of securities regulatory or other authority to their request to hire a consultant or a controller in compliance. The CSA indicate that the notice should apply to a small number of companies during a given year.
The regulators emphasize that companies can be forced to engage a consultant to suite of regulatory measures taken by the staff of the CSA, by a decision of the administrator or on order of a regulator if an investigation of a compliance audit or an investigation of the application reveals a non-compliance with significant laws on securities.
A guide to hiring
The notice is written to help companies identify, assess, and engage the appropriate consultants, to ensure transparency regarding the process and criteria for approval of consultants proposed by the CSA, to inform consultants and contractors of the expectations of the CSA in terms of commitment, role, and reporting, and improve the process of monitoring and remediation for the companies subject to a regulatory decision.
The document outlines who can be a consultant, what is their role, what are the usual criteria of the CSA to approve a consultant, what firms necessary verification should apply when they choose a consultant and will consider the requirements of regulators in terms of disclosure with respect to the consultants hired.