This type of inspection consists of a self-evaluation or thematic questionnaire designed to assess compliance practices, identify the risks associated with a specific theme or improve understanding of registrants’ distribution practices.

Self-evaluation questionnaire

Inspection process

  • Notification by e-mail of a communication available in E-Services relating to a self-evaluation questionnaire;
  • Instruction letter, including maximum completion time (30 days);
  • Reminder sent 10 days before the deadline.

Thematic questionnaire

Inspection process

  • Instruction e-mail, including the questionnaire link and maximum completion time;
  • Reminder sent before the deadline.

Mandatory questionnaires

Those that have been selected must complete the self-evaluation or thematic questionnaire sent to them.

Not completing the questionnaire constitutes a failure to comply with the obligations prescribed by law and may result in sanctions.

Special focus on social media

The AMF conducted a thematic inspection of firms subject to the Act respecting the distribution of financial products and services This link will open in a new window in order to:

  • understand how firms and representatives use social media;
  • raise firms' awareness of the risks associated with using social media; and
  • encourage the adoption of appropriate control measures.

Main deficiencies identified

The AMF's inspection highlighted the following practices that could increase the risk of non-compliance:

  • Insufficient knowledge by the responsible officer about representatives’ use of social media.
  • Lack of policies and procedures governing the use of social media.
  • Insufficient monitoring of the use of social media.
  • Lack of pre-publication approval mechanisms.

The use of social media involves several issues:

  • Regulatory compliance: risk of false or misleading information being spread through posts.
  • Computer security: threat to privacy and risks of cyber attacks.
  • Reputation: damage to the firm's or the industry's image in the event of problematic posts.
Insight

Three key measures for the appropriate use of social media

To ensure appropriate use of social media, firms should implement measures to:

  • Manage how social media is used;
  • Monitor activities carried out on social media platforms; and
  • Set guidelines for the content of published posts.

These three measures will help reduce the risk of non-compliance and ensure compliance with the applicable regulatory requirements.

For more information about governance and compliance practices, refer to the Governance and Compliance Guide (pdf - 25 MB)This link will open in a new windowUpdated on June 1st, 2021.

End of the insight