The Ontario Securities Commission is preparing for declining revenues and rising expenses, according to its latest Statement of Priorities.

The OSC forecasts revenue for 2002/2003 fiscal year at $63.3 million, which is 19% lower than the $78.2 million collected in 2001/2002. The forecast includes an estimated impact of a further proposed 10% fee decrease that will be presented to the Minister of Finance for approval during 2002/2003. It also reflects a reduction in fee revenues due to an expected continued decline in market activity, particularly in the mutual funds sector.

The commission has budgeted for total operating expenditures of $53.7 million, a 3.1% increase over the 2001/2002 budget. The key budget component is salaries and benefits costs, which are projected to rise by 9.7% to $37.4 million. Total staffing is projected to reach 367 by March 2003.

The OSC also says that it continues to work on the proposed re-engineering of its fee structure. A finalized draft rule is expected to be released for comment by May 2002.