TORONTO, Dec. 20, 2012 /CNW/ - The Ontario Securities Commission (OSC) today published final amendments to OSC Rules 13-502 and 13-503 and their companion policies, which set the OSC's funding model for the next three fiscal years.
This follows careful consideration of the public feedback received on the proposal published in August 2012. In response, the OSC revised its proposal while ensuring that fees are aligned more closely with costs to the OSC in meeting its evolving regulatory responsibilities. As a result, the OSC has reduced the percentage increases in participation fees for both reporting issuers and registrants, and has removed the component of these increases designed to build a surplus.
"The OSC's new funding model strikes the right balance between feedback from market participants and the Commission's responsibility to respond to evolving capital market demands," said Maureen Jensen, the OSC's Executive Director and Chief Administrative Officer. "We have responded appropriately with a funding model that will enable us to continue to carry out our important regulatory work for the benefit of investors, while recognizing the difficult environment for market participants."
The new fee model better aligns the fees paid by market participants with the resources employed by the OSC in regulating their activities. Under the new fee model, fees will remain unchanged or decrease for 45% of issuers and 55% of registrants.
Although the OSC acknowledges that many of the entities under its jurisdiction face difficult economic conditions, it has become increasingly more costly for securities regulators to oversee the capital markets. Additionally, enforcement actions have grown rapidly in scope and complexity, requiring more resources in order to investigate and prosecute.
The rule amendments have been delivered for approval to the Minister of Finance. If approved by the Minister of Finance by February 19, 2013, they come into force on April 1, 2013.
The new model is expected to be in effect for a three-year period, starting April 1, 2013. Copies of the proposed amendments and the OSC's response to the comments received are available on the OSC's website: www.osc.gov.on.ca.
SOURCE: Ontario Securities Commission
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