Securities regulators in Ontario, Quebec, British Columbia, and Alberta have entered into an agreement that spells out how they will deal with surpluses generated by SEDAR.

Under the agreement, the Ontario Securities Commission will deposit the surplus into a segregated account and will invest the funds in accordance with an investment policy. The surplus is to be used for the development or enhancement of SEDAR, the development or enhancement of SEDI, to permit the reduction in the SEDAR fee schedule, or to make up a shortfall.

The OSC may, in its discretion, retain the services of an investment advisor to assist in the investment and management of the funds. Any interest or other amounts earned on the funds, net of the OSC’s out-of-pocket expenses, will be applied to the account. The funds may only be paid out in accordance with the terms of this agreement; and, if it has been authorized by each of the regulators.

The agreement was signed back on May 19, and, subject to the approval of the minister, takes effect 60 days after this publication.