Staff Notice: OSC Staff Notice - 33-722 - Registration Renewal Procedure and Payment of Annual Participation Fees

This notice will describe the renewal procedure for registrants in Ontario in light of the implementation of the National Registration Database. It will also describe the process for the payment of a registrant's annual participation fee.

Historically, OSC registration staff sent a renewal notice to each registered firm and its agent for service reminding the firm to renew its registration and the registration of the individuals it sponsors. OSC registration staff will no longer be sending out this renewal notice to registered firms.

In Ontario most registrations are for a period of one year and must be renewed annually on December 31. Under Ontario securities laws registrants who wish to have their registration renewed must make an application for renewal at least 30 days before the end of their current registration. This means that most registrants must make an application for renewal by December 1. A registered dealer or adviser will apply for the renewal of the registration of registered individuals that are sponsored by it.

Application for renewal
The procedure for a registered firm making an application for the renewal of registration is

• apply to the Director by December 1
• the application is to be in writing and may be made in the form that is available on the OSC website at www.osc.gov.on.ca under Market Participants-Electronic Forms-Registration Renewal
• be sure to include with the application the names and NRD numbers of the individuals whose registrations are not being renewed
• Bulk Fee Exclusion - firms should consult the NRD Filer Manual for details on how to make a bulk annual fee exclusion submission to exclude from the annual fees those registered individuals which it does not wish to have renewed.
• the application may be sent by the firm's AFR or an officer of the firm by e-mail to this address: [email protected] or may be delivered or mailed to this address

                  Ontario Securities Commission
                  Attention: Registrant Regulation
                  20 Queen Street West
                  Box 55
                  Toronto, Ontario
                  M5H 3S8

• ensure your NRD account has sufficient funds for NRD to withdraw the annual participation fee on December 31

Note that even if a registered firm has applied for registration by December 1 the firm's registration will not be renewed unless the appropriate annual participation fee is paid by December 31. If the annual participation fee is not paid by a firm, the firm's registration and the registrations of its sponsored individuals will be suspended.

Annual participation fee
In addition to renewing registration annually, each registered firm under the Securities Act (Ontario) must pay an annual participation fee prescribed by OSC Rule 13-502. Each registered firm under the Commodity Futures Act (Ontario) (CFA) must pay an annual participation fee prescribed by OSC Rule 13-503 when that rule becomes effective. Until OSC Rule 13-503 becomes effective, each registrant under the CFA must pay the annual registration fees prescribed by Schedule 1 to the Regulation made under the CFA.

The procedure for calculating and paying the annual participation fee due under OSC Rule 13-502 and under OSC Rule 13-503 (when effective) is

• each registrant firm must complete and file form 13-502F3 and form 13-503F1 by December 1 which sets out the participation fee for the most recently completed financial year
• refer to Appendix B to Rule 13-502 and Appendix A to Rule 13-503 to determine the participation fee due based on revenue
• OSC registration staff will enter the participation fee from form 13-502F3 and from form 13-503F1 on NRD
• each firm must ensure it has sufficient funds in its NRD account to cover its annual participation fee by close of business on December 30
• annual participation fees will be withdrawn from NRD accounts in the early hours of December 31, between 1:00 am and 6:00 am through electronic funds transfer

Note that the amount shown on the preliminary annual fee summary available under the firm information tab on NRD may not be the final annual participation fee owed by a firm. The preliminary annual fee summary for a firm is generated on December 1 and if the participation fee field on NRD is not updated for the current year by December 1 then the preliminary annual fee summary will be based on the previous year's number. OSC registration staff will update the participation fee field for each firm on NRD before December 30 according to the form 13-502F3 and form 13-503F1, if applicable, filed by each firm.

If you have any questions please contact the OSC Contact Centre at 416-593-8314 or toll- free at 877-785-1555.

October 15, 2003