OSC publishes final fee changes for restricted dealers

TORONTO – The Ontario Securities Commission (OSC) announced today the publication of final amendments to its fee rules for restricted dealers, or firms that have been permitted to carry on business under terms and conditions imposed by the OSC.

The OSC published the proposed fee changes for public comment on November 10, 2023.

The amendments introduce two new fees for restricted dealers:

• an additional fee of $24,500 at the time of OSC registration; and
• an additional exemptive relief application fee of $24,500 for restricted dealers operating as a marketplace.

The fee changes are intended to address and recover additional regulatory costs associated with registering restricted dealers, which include the majority of crypto asset trading platforms. The OSC continues to observe higher onboarding costs for this registrant category when compared to most existing market participants.

The final amendments also include changes to the definition of “registered firm” in its fee rules to include individuals or companies required to be registered under Ontario securities law. These changes, if approved, would mean that a non-compliant, unregistered firm operating in Ontario is responsible for paying the same participation fees as a registered firm.

The final amendments can be found on the OSC’s website and will come into force on July 2, 2024, pending Ministerial approval.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets, and confidence in the capital markets, to foster capital formation, 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 https://www.osc.ca.

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