As part of its ongoing effort to eliminate needless regulatory costs, the Ontario Securities Commission (OSC) is scrapping an outdated paperwork exercise for investment fund managers.
The OSC said Thursday it has eliminated the requirement for pooled fund managers to seek approval to act as a trustee — a requirement established back in 1997 in a much different regulatory environment.
This process required managers to apply and pay a $1,500 fee, while also consuming OSC resources to review these applications, which are now routinely approved.
“This dated requirement no longer makes sense, given how the regulatory regime for investment funds has evolved,” said Raymond Chan, director of investment funds and structured products at the OSC.
The decision is effective immediately.
“We are pleased to eliminate this approval process, which will spare investment fund managers from having to complete and file time-consuming and duplicative paperwork to the OSC,” Chan added.
The OSC noted the idea of scrapping the requirement was first identified by its Burden Reduction Task Force, which is seeking to identify, and eliminate, unnecessary rules and processes.