Fees for delayed OBA filings to be waived as part of OSC burden reduction project

TORONTO - The Ontario Securities Commission (OSC) announced today that it will no longer require registrants to pay fees for disclosing outside business activities (OBAs) past the required filing deadline during a two-year moratorium. The moratorium will begin retroactively on January 1, 2019 and end on December 31, 2021, at the latest.

The moratorium is time-limited because the OSC plans to work to clarify the current regulatory requirements while the fee moratorium is in place. Registrants are still required to disclose OBA information, but no fees will be charged for filing notices past the deadline.

The amendments were first identified by the OSC’s Burden Reduction Task Force, which has a mandate to consider and act on suggestions to eliminate unnecessary rules and processes, while protecting investors and the integrity of Ontario’s capital markets.

Under Ontario securities law, individual registrants are required to file OBA disclosure within 10 days of a new OBA or a change to an existing OBA. The OSC currently charges fees of $100 per business day for a late filing, subject to applicable yearly caps.

OBA reporting is an important tool in the OSC’s gatekeeping function because the information identifies registrants’ potential conflicts of interest and allows the OSC to take action when necessary.

“We are pleased to implement this change, that will effectively reduce burden for registrants,” said Debra Foubert, Director of Compliance and Registrant Regulation at the OSC. “Based on fees charged last year, we anticipate this change will result in over $700,000 in savings for Ontario registrants.”

Amendments to OSC Rule 13-502 Fees and OSC Rule 13-503 (Commodity Futures Act) Fees (each a Fee Rule) as well as changes to their corresponding Companion Policies are published on the OSC website. The amendments will come into force 15 days after Ministerial approval.  

For further updates on the OSC Burden Reduction Task Force and its initiatives, follow #OSCRegBurden on Twitter, or sign up for OSC email alerts.         

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 www.osc.ca.

 

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