The Ontario Securities Commission is projecting a $30 million surplus in it’s recent statement of priorities for the coming year.

The commission’s revenue forecast for 2002 is $84.2 million, which is 2.2% higher than the $82.4 million collected in 2001. The forecast reflects the impact of 10% fee decreases implemented in August 1999 and June 2000, and a reduction in fee revenues due to an expected decline in market activity.

However, the negative effect of these changes is expected to be offset by the projected one-time $7.9 million increase in registration revenues, which will be collected due to the implementation of a uniform anniversary date for registration.

The OSC has budgeted $54.3 million for 2002 operating expenditures. OSC salaries and benefits which are projected to rise by 14% to $34.1 million. The OSC says, “This increase reflects the annualized cost impact of hiring which occurred in 2001 as well as further new staff in 2002.” It notes that total staffing is projected to reach 361 by March 2002. The commission has also budgeted $5.8 million for professional services costs in 2002 which is a 3.5% increase from 2001. The increase is being attributed to “costs associated with a significant number of legal proceedings.”

The 2001/2002 Statement of Priorities articulates the business strategy and priorities the commission has set to accomplish its goals. It says that the integration activities associated with the merger of the OSC and the Financial Services Commission of Ontario will be a prime focus during 2001/2002. It also remains committed to delivering its regulatory services in a business like manner and working closely with its CSA colleagues and market participants to ensure that the regulatory system remains relevant.

During the year, it will focus its resources on the following 12 priorities:

> developing approaches to regulation which support market integration and innovations due to technological change;

> increasing its focus on disclosure review and strengthen SRO oversight;

> strengthening the framework of requirements for timely and reliable continuous disclosure by reporting issuers;

> addressing the growing importance of continuous disclosure and technological change in the secondary markets;

> developing national harmonized approaches to the regulation of financial products, services and SROs;

> implementing a more streamlined fee structure;

> emphasizing investor education initiatives;

> strengthening the governance of mutual funds;

> developing and implementing a new merged financial services agency;

> participating pro-actively in the international regulatory community;

> implementing accountability mechanisms to ensure that the OSC continues to effectively and efficiently meet the needs of its constituents;

> providing a dynamic and stimulating environment in order to attract, retain and motivate employees.