The Ontario Securities Commission (OSC) says it has uncovered a number of issues with firms improperly calculating their regulatory fees.
The commission published OSC Staff Notice 33-741 — Report on the Results of the Reviews of Capital Markets Participation Fees Thursday in the OSC Bulletin, which reveals the results of a review it carried out earlier this year of the capital markets participation fees that firms must pay to play in the province’s markets.
It reports that it found a number of issues in the calculation of these fees, including: incorrect revenue reporting, incorrect deductions taken, and incorrect calculations of the percentage used to determine specified Ontario revenues, among other things.
In addition to flagging these issues, the notice provides guidance to firms on these specific problem areas, in an effort to improve compliance in the future. The OSC suggests that firms use the notice as “a self-assessment tool to ensure that participation fees are calculated correctly.” And, it also promises to continue to review participation fee calculations on an ongoing basis.