Among other things, the amended rules would remove the use of
reference fiscal years in the calculation of participation fees and
require that market participants calculate their participation fee
payable using information from their most recent financial year.
According to the OSC, the change would achieve a "closer
link" between a market participant's current financial
performance and the level of participation fee payable.
A number of new activity fees would also seek to improve
fairness and consistency while better matching revenues to the
OSC's costs. Proposed new activity fees would include $83,000
for an application for designation as a trade repository, $15,000
for an application for designation as a designated rating
organization and an extension of the $4,500 take-over and issuer
bid circular fee to information circulars filed in connection with
such things as going private transactions, amalgamation and
mergers. An additional fee of $2,500 would also apply for each
technical report incorporated by reference in a prospectus.
The current rule requiring unregistered investment fund managers
to pay participation fees within 90 days after the end of its
fiscal year would also be amended to require a fee payment deadline
of December 31. Investment fund managers would also no longer be
exempted from late fees in respect of filing Form 13-502F4
Capital Markets Participation Fee Calculation. Of
particular note, the OSC is also considering whether to change the
requirement in respect of the payment of late fees so as to make
investment fund managers liable for the late fees in respect of any
investment funds for which they act as manager.
According to the OSC, while new exempt market and derivative
related fees were also considered, the underlying policy work in
respect of those issues has yet to be completed, and any new fees
may be included in future proposals. The OSC is accepting comments
on the proposed changes until December 17, 2014.
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The Canadian Office of the Superintendent of Financial Institutions ("OSFI") recently ruled that a bank cannot promote comprehensive credit insurance ("CCI") within its Canadian branches under the Insurance Business (Banks and Bank Holdings Companies) Regulations (the "Regulations").
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