Possible Participation Fee Relief from OSC


The Ontario Securities Commission (OSC) has published OSC Staff Notice 13-704 indicating that it will consider providing relief on the participation fee charged to certain small registered firms and Class 1 or Class 3C reporting issuers (specified reporting issuers) for 2013.
Class 1 reporting issuers are reporting issuers incorporated or organized under the laws of Canada or a jurisdiction in Canada who, at the end of their previous fiscal year, had securities listed or quoted on a marketplace in Canada or the United States. Class 3C reporting issuers are reporting issuers that are not incorporated or organized under the laws of Canada or a jurisdiction in Canada, but had a greater trading volume for their securities listed or quoted on marketplaces in Canada than their securities listed or quoted on marketplaces outside Canada during their previous fiscal year.
The application for relief is available to registered firms and specified reporting issuers where, based on their 2013 fiscal year: (a) the registered firm had specified Ontario revenues under C$1 million or the specified reporting issuer had a capitalization under C$50 million; and (b) the registered firm’s specified Ontario revenues, or the specified reporting issuer’s capitalization, decreased by at least 50 per cent from the amounts of these items in 2011 according to the following formula:
Specified Ontario Revenues or Capitalization:
% decrease = 2011 (value) – 2013 (value) X 100
2011 (value)
All amounts used to determine eligibility for fee relief must be determined in accordance with OSC Rule 13-502 Fees.
Registered firms and specified reporting issuers that meet these requirements will be considered for a one-time 50 per cent refund (or reduction) of their participation fee for 2013, subject to a minimum participation fee of C$800. The participation fee relief is projected to be between C$235 and C$17,275 for registered firms and between C$160 and C$13,150 for specified reporting issuers, although most applicants will be eligible for fee relief closer to the lower ends of these ranges. As an example, a specified reporting issuer whose capitalization decreased to C$8 million in 2013 from C$40 million in 2011 would be eligible for a refund (or reduction) of C$1,160.
The application process for fee relief closes on March 31, 2014. For more information, including how to apply for a refund, seeOSC Staff Notice 13-704.
For further information, please contact:
Ross McKee     416-863-3277
or any other member of our Capital Markets & Securities Regulation group.

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