The Ontario Securities Commission today announced a rebate of $15 million in fees to market participants, representing a portion of the regulatory costs they have paid during the last two years. The regulator says the rebate reflects stronger than expected revenues under the OSC’s new fee structure.
“This is good news for market participants” said Charlie Macfarlane, executive director of the OSC, in a release. “Our fee structure calls for us to adjust fees on a three-year cycle. We’re pleased that the Commission has authorized a one-time rebate of fees to expedite the return of the surplus to the market participants who funded it.”
On March 31, 2003, the OSC introduced a new fee model under the provisions of the Securities Act. The new fee structure was designed to accomplish three primary objectives:
- reduce the overall fees charged to market participants from what previously existed in Ontario;
- create a clear and streamlined fee structure and;
- adopt fees that fairly reflect the Commission’s cost of operations.
Under the new fee model, the OSC sets fees for issuers and registrants reflecting the cost of regulating each of these sectors. These fees are to be adjusted every three years. While it was initially planned that any surplus or deficit incurred over this three year period would be reflected when the fees were reset at the end of the period, the OSC says fees received have exceeded expectations, generating a large enough surplus that an expedited rebate was justified.
The rebate is on a pro-rata basis, based on the revenues collected and surplus generated from each of the sectors.