and federal regulatory agencies in Canada perceive statutory compliance as occurring
along a continuum. Indeed, it is this belief that drives many of their regulatory
programs and the development of associated policies and strategies. It is helpful
for the regulated community to understand the continuum so that they can minimize
the uncertainty that is often associated with regulatory compliance and enforcement.
By recognizing its point on the continuum, a regulated entity is able to reasonably
predict future enforcement tactics and can make appropriate adjustments in its
compliance management systems. It should also be recognized that a state of
compliance can be transitory and is generally subject to evolving influences
An entity is positioned
along the continuum when it is subject to a requirement to comply through its
involvement in a regulated activity. The activity may be regulated through legal
instruments such as Permits and Licenses. The entity's position on the continuum,
often a function of its compliance history, will generally guide the regulator's
response to non-compliance.
generally involving education, to familiarize regulates with the requirements
of regulation, the benefits of complying, and the liabilities associated with
and audits which either confirm compliance or alternatively, in the case of non
compliance lead to a counseling or enforcement response.
cautions, alerts, notices etc., either oral or in writing, notifying a regulatee
of confirmed or suspected non compliance and the need to alter behavior to avoid
Orders, specific to the offending activity, which compel compliance, and/or investigations,
conducted for the purpose of supporting prosecution or some other judicial proceeding,
which may, in the case of the defendant, specifically compel compliance as well
as promote compliance generally among regulatees.
To achieve compliance,
regulators rely on two compliance models, frequently in juxtaposition. The Cooperative
Model and the Deterrence Model each have distinct features and specific application.
A regulated entity's interaction with the regulator will occur within the framework
of either or both of these models.
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