Proposed Revocation and Replacement of OSC Fee Rule

New OSC Rule 13-502 introduces more streamlined structure and reduced fees

Proposed OSC Rule 13-502 Fees, (the "New Rule") which replaces the existing Rule 13-502 is set to come into force on April 1, 2006. The New Rule preserves most aspects of the existing fee regime, with an aim of creating a clearer and more streamlined fee structure, as well as imposing fees at levels that more accurately reflect costs incurred by the Ontario Securities Commission (OSC) in connection with capital markets-related services.

The fee regime in its current form requires registrants, investment fund managers and reporting issuers to pay annual "participation fees", and "activity fees" as appropriate. The participation fee category is comprised of a "corporate finance participation fee" and a "capital markets participation fee", and is intended to reflect a market participant’s proportionate expected participation in Ontario’s capital markets in the upcoming year. When this fee regime