OSC introduces flexible fee certification process for market participants

The Ontario Securities Commission (OSC) announced today that it has made amendments to its fees rules to allow certain additional senior officers at firms to certify and submit the annual capital markets participation fee forms to the OSC. Subject to Ministerial approval, this new option will be available to industry for the December 1, 2019 participation fee form deadline.  

Registered firms and other market participants are required to pay an annual capital markets participation fee to the OSC to help recover the Commission’s operational costs to deliver on its mandate. The amount is calculated by firms in accordance with a fee calculation form. Currently, this form must be certified by the firm’s Chief Compliance Officer (CCO), even if another senior officer is responsible for preparing the calculation.

The OSC is amending its rules so that a Chief Financial Officer, or another specified senior officer at the firm, can certify and submit the annual capital markets participation fee form to the OSC.

“Firms have told us that our current process means senior officers must spend time and effort reviewing the same information,” said Debra Foubert, Director, Compliance & Registrant Regulation at the OSC. “To alleviate this burden, we are introducing more flexibility on who can sign off on fee forms.”

Firms that wish to continue having their CCO certify their annual capital markets participation fee calculation forms will still be permitted to do so.

To change the fee certification process, the OSC is publishing amendments to OSC Rule 13-502 Fees and OSC Rule 13-503 Fees (Commodity Futures Act). The amendments can be found on the OSC’s website and will come into force 15 days after Ministerial approval.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair and efficient capital markets and confidence in the capital markets, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at http://www.osc.gov.on.ca.

Source: CISION