The Ontario Securities Commission (OSC) is publishing for a 90-day comment period ending February 7, 2024, proposed amendments (Proposed 13-502 Amendments) to OSC Rule 13-502 Fees (the Fee Rule), published in Annex A; and proposed amendments (the Proposed 13-503 Amendments) to OSC Rule 13-503 (Commodity Futures Act) Fees (CFA Fee Rule), published in Annex A.1. (collectively, the Proposed Amendments).
The Proposed Amendments, if approved, would introduce two new fees (the Proposed Fees) for restricted dealers: an additional fee of $24,500 at the time of OSC registration; and an additional exemptive relief application fee of $24,500 for restricted dealers operating as a marketplace. The Proposed Fees are meant to cover the higher onboarding costs related to the registration of restricted dealers, which include the majority of crypto asset trading platforms, compared to most existing market participants.
The Proposed Amendments also include a change to the definition of “registrant firm” in each of the Fee Rule and the CFA Fee Rule that will extend the application of the participation fee and late fee requirements. Under the Fee Rule, unregistered persons or companies will be required to be registered as dealers, advisers, or investment fund managers, under the Securities Act (Ontario) (OSA). Under the CFA Fee Rule, unregistered persons or companies are required to be registered as dealers or advisers, under the Commodity Futures Act (CFA).
Stakeholders are invited to provide comments in writing by February 7, 2024. If approved, the Proposed Amendments are expected to become effective on July 2, 2024.
The Proposed Amendments are available for download from the website of the Ontario Securities Commission.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.
