The Ontario Securities Commission (OSC) has announced the publication of the final amendments to its fee rules for restricted dealers, for firms permitted to carry on business under terms and conditions imposed by the OSC, Amendments to OSC Rule 13-502 Fees, OSC Rule 13-503 (Commodity Futures Act) Fees, Changes to their Companion Policies and Related Consequential Amendments and Changes, (the final amendments).
The final amendments will come into force on July 2, 2024, pending Ministerial approval.
The OSC published the amendments as proposals for public comment on November 10, 2023. The final amendments introduce two new 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 new fees are intended to address and recover additional regulatory costs associated with registering restricted dealers, which include crypto asset trading platforms. OSC staff note they continue to observe higher onboarding costs for this registrant category when compared to most existing market participants.
The final amendments also include changes to the definition of “registered firm” in its fee rules to include individuals or companies required to be registered under Ontario securities law. These changes, if approved, would mean that a non-compliant, unregistered firm operating in Ontario is responsible for paying the same participation fees as a registered firm.
Amendments to OSC Rule 13-502 Fees, OSC Rule 13-503 (Commodity Futures Act) Fees, Changes to their Companion Policies and Related Consequential Amendments and Changes, is 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.
