The Ontario Securities Commission (OSC) has proposed amendments to OSC Rule 13-502 Fees and OSC Rule 13-503 (Commodity Futures Act) Fees in order to charge new fees for (i) restricted dealers and (ii) firms that are permitted to carry on business under terms and conditions imposed by the OSC.

Restricted dealers would be subject to the following new fees:

  • $24,500 at the time of OSC registration as an additional fee; and
  • An additional exemptive relief application fee of $24,500 for restricted dealers operating as a marketplace.

These new fees are intended to address the costs the regulator faces when onboarding restricted dealers as compared to most other existing market participants.

The definition of “registered firm” is also proposed to be expanded to included individuals or companies required to be registered as dealers, advisers or investment fund managers under Ontario securities law (or dealers or advisers under the Commodity Futures Act), thus requiring non-compliant firms to pay the same participation fees as a registered firm. Comments on the proposal are due by February 7, 2024. The amendments are proposed to become effective as of July 2, 2024.

November 30, 2023