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How much do you know about the Nova Scotia Securities Commission (NSSC) and the people behind it? The Before You Invest Blog has previously published posts on the Commission, highlighting our mandate and the role of the different Commission branches. But, what about the people that make up the Commission, the ones who shoulder that mandate and tirelessly work to protect Nova Scotia investors? Our new series “Getting to know the Nova Scotia Securities Commission” takes a closer look at some of these people, what they do and how they support the mandate of the NSSC. Today we’re speaking with Compliance Examiner for the NSSC, Angela Scott.
What is your role with the Nova Scotia Securities Commission?
My name is Angela Scott and I'm the Compliance Examiner in the market regulation branch of the Nova Scotia Securities Commission.
How do you support the mandate of NSSC?
It's my job to ensure that registrants have a compliance program in place and that they're conducting their activities in accordance with Nova Scotia securities laws. Compliance examinations are the main tool that we use to monitor registrants. An examination reviews several or all functional areas of a firm. An example of a functional area includes know your client or know your product requirements, client reporting, portfolio management, conflicts of interest, etc. The extent of our review depends on a number of factors. We think about the risk rating of the firm, when the last time we went in to see the firm, if we've received any tips or complaints about a firm, or if there's anything happening in the financial industry in general where we may need to go in and take a closer look at our firms.
What should the public need know about NSSC that they might not know?
The market regulation branch is a small but mighty team. For example, not a lot of people know that I am the only compliance examiner. I do have support from the Manager of Registrant Regulation and the Deputy Director of the Market Regulation branch when conducting compliance examinations, but it is just me, as the compliance examiner. Having a small team is a very unique opportunity. I get to see a fuller picture of the regulatory environment in Canada. For example, all the employees here at the Nova Scotia Securities Commission are part of the Canadian Securities Administrators and we are part of many different project groups and committees. Because of our small team, I get to participate in many of those committees, and I don't think an examiner in a larger jurisdiction would get to have the same kind of experiences I do because of that. It's nice to be able to see a lot of different topic areas and participate in those. This can come with its own challenges. We like to be as involved as we can in any CSA projects and national sweeps, even if it's just a smaller piece of the pie.
What do you find most challenging about your role?
I would say the thing that I find the most challenging is what also makes it the most interesting and exciting. You never know how your day is going to go or what kind of situation might come your way. A part of my job is to respond to inquiries from the public. Sometimes I will receive an e-mail or call about a situation that I have never heard of or experienced, and I really don't know off the top of my head how to proceed. I think that this is a big part of working in a regulatory environment. Sometimes you have to just take a step back and say I really don't know the answer, and I'm going to look into this and get back to you.
What do you enjoy most about your role?
I take a lot of pride in protecting the investors of Nova Scotia. Investor protection is the cornerstone of a healthy financial environment and I love that it is my job to help Nova Scotia investors have confidence in investing here in our province. I also feel very lucky that I get to work with a lot of compliance professionals across Canada through the Canadian Securities Administrators and also compliance professionals in the USA through the North American Securities Administrators Association. I feel that collaboration and sharing information is very important and this helps me to be a better examiner. If there are any kind of difficult compliance cases that come up, you have a whole sea of people that you can run it by. This not only helps me be better at my job but also ensures a consistent regulatory approach across the country.
What kind of things do you look for when doing compliance reviews?
During compliance examinations, we look for many different things. A couple of the things that I focus on would be firms that have a strong culture of compliance. If an Ultimate Designated Person or Chief Compliance Officer focus on compliance at a firm, then you see this flow down in the business practices of the firm and the employees are more likely to mirror the activities of their leadership. Another topic that I focus on is an adequate policies and procedures manual. A lot of times we would go into a firm, and we would see a policy and procedures manual that looks very comprehensive, covers all the bases and the firm appears to be conducting operations perfectly under securities laws. However, when we start to look at the actual practices of a firm and the documentation, interviewing employees, we see that the activities are not actually aligning with what is written in the policies and procedures manual. For our compliance examination report, we would address this by working with the firm to make sure that the activities are aligning with the actual written policies. This could be a mix of updating the PPM or adjusting the activities of the employees. It really depends on what is happening at the firm.
Why is it important that firms and financial institutions undergo regular compliance reviews?
Regular compliance reviews are in the best interest of the firms as well as the clients that they service. Usually, the issues that we uncover during a compliance examination are things that the firm might not necessarily know that they are doing wrong. Our examinations can help to uncover any gaps in their processes and help firms to strengthen their internal processes and compliance with securities laws. This can really help firms from a risk management perspective and helps them to avoid any costly mistakes. My goal as a compliance examiner during these examinations is to always help firms to strengthen their compliance programs and ensure that they are conducting operations in the best interest of their clients.
What do you enjoy doing with your time outside the NSSC?
Outside my time at the Nova Scotia Curious Commission, I enjoy spending time with my four-year-old son and my husband. We love to get out and enjoy nature, especially when the weather is still nice. We really enjoy fall, and you can often find us a local park or a little road trip to the valley on the weekend.