(December 5 – 14:35 ET) – The British Columbia Securities Commission is reducing or eliminating 14 fees that apply to mutual fund dealers and publicly traded companies listed on the Canadian Venture Exchange.
“Mutual funds and publicly listed companies will save $4 million as a result of these changes,” said Doug Hyndman, commission chair. “This will reduce costs for companies that raise investment capital in B.C.”
Major reductions include:
- a 40% decrease in the flat fees for filing mutual fund prospectuses;
- a 30% reduction in surcharges paid by mutual fund companies; and
- a 30% drop in financial statement filing fees for companies listed on the CDNX.
“In keeping with our streamlining initiative, we are reducing costs and red tape for those who issue securities, and we’re bringing B.C.’s fees and practices more into line with those in other provinces,” said Paul Ramsey, B.C. minister of finance.
Other changes announced by the BSSC will see individuals and firms that contravene securities regulations pay more for hearing and investigation costs. Registered dealers, underwriters and advisers that are late in filing required financial statements will face a new fee of $100 a day.
The registration period for market participants is also being reduced to one year from two with a corresponding decrease in registration fees. The BCSC says this change was made to streamline the registration process and harmonize it with other provinces.
The commission conducted a detailed review of its fee and cost structure and found that the costs of regulating public companies and mutual fund issuers was less than the fees generated from that segment of the industry, Hyndman added. However, fees for registered dealers and advisers will not decrease since they currently meet the costs of service delivery.