OSC Proposes Changes To The Regulatory Fees Payable By Issuers And Registrants

On October 3, 2008, the Ontario Securities Commission published proposed changes to OSC Rule 13-502 Fees, its Forms and Companion Policy. The deadline for comments is January 3, 2009. If adopted by the OSC and approved by the Ontario government, the amended Rule would take effect on April 1, 2009.

The proposed changes are significant and will affect reporting issuers, registrants, and unregistered fund managers. The proposed changes have particular resonance when considered against the current market and economic downturn.

The most important proposed change relates to the basis of calculation of participation fees that are payable on an annual basis by reporting issuers, registrants and unregistered fund managers. Instead of basing calculations on capitalization, in the case of a reporting issuer, or its specified Ontario revenue, in the case of a registrant/unregistered fund manager, for its most recently completed financial year, a participant will prepare