The Ontario Securities Commission (OSC) is waiving late filing charges for outside business activity (OBA) disclosures.
The OSC announced Wednesday that it is suspending OBA late filing fees for two years, retroactive to Jan. 1, 2019. During the two-year moratorium, the regulator will work to clarify the requirements in this area.
“Based on fees charged last year, we anticipate this change will result in over $700,000 in savings for Ontario registrants,” said Debra Foubert, director of compliance and registrant regulation at the OSC, in a release.
Currently, the OSC noted in the release, individual registrants are required to file OBA disclosure within 10 days of a new activity or change to an existing activity. It charges $100 per day for late filings, subject to applicable yearly caps.
While disclosure will still be required, the regulator will no longer impose fees for filing after the deadline.
“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,” it said.
The commission said that the move to suspend late filing fees was proposed by its Burden Reduction Task Force, which is leading the regulator’s effort to find ways to eliminate unnecessary rules and regulatory processes.
“We are pleased to implement this change, that will effectively reduce burden for registrants,” Foubert said.