OSC Seeks Comment on Amendments to Fee Model

TORONTO, Aug. 23, 2012 /CNW/ - The Ontario Securities Commission (OSC) today published for comment draft OSC rules 13-502 and 13-503, which propose amendments to the OSC's funding model for the next three years.

The changes proposed in the draft rules will better align the fees paid by market participants with the resources employed by the OSC in regulating their activities. While the OSC recognizes the difficult economic circumstances for many market participants, the challenges facing all major securities regulators in overseeing the increasingly complex and interconnected capital markets requires new approaches for managing and employing limited regulatory resources. In addition, the OSC faces increasing enforcement demands that require specialized expertise in conducting multi-jurisdictional investigations and which present challenges related to geography, access to records and inter-agency co-operation.

"Aligning our revenues and costs in a manner that is fair to all market participants and reflective of the new regulatory reality is a key objective of this funding model," said Maureen Jensen, the OSC's Executive Director and Chief Administrative Officer. "The proposed fee structure is intended to provide the Commission with the resources required to meet our increasing regulatory commitments, while continuing to deliver strong investor protection."

The OSC must raise its fees to fund additional resources and ensure it has the appropriate institutional capacity, expertise and skills to meet evolving regulatory priorities, such as enhanced oversight of emerging market issuers, derivatives and credit rating organizations. While the proposed changes may result in increased fees for large and transnational participants, the model introduces additional fee tiers that will minimize increases for small and medium sized participants.

In developing the proposed fee model, OSC staff surveyed the practices of select Canadian and international regulatory agencies. If approved, the new model will be in effect for a three-year period, starting April 1, 2013.  Copies of the proposed amendments are available on the OSC's website: www.osc.gov.on.ca. The comment period is open until November 21, 2012.

SOURCE: Ontario Securities Commission

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