News Releases
ASC seeks comment on proposed changes to fees
Nov 02, 2015
The Alberta Securities Commission (ASC) today published for comment proposed new ASC Rule 13-501 Fees, which will replace the ASC’s current fee schedule.
The Rule would establish a new participation fee model for reporting issuers (other than investment funds) that will alter the method used to calculate fees for certain filings, while eliminating fees based on proceeds from public and exempt distributions for these issuers. The Rule would also establish a new participation fee model and recognition fees for specified regulated entities, such as exchanges, quotation and trading reporting systems and clearing agencies.
During the past decade, the ASC’s regulatory obligations have increased as more resources are required to monitor growth and ensure compliance in the exempt market, manage increasingly complex enforcement cases, and proactively address constantly evolving fraudulent activities. The ASC operates on a cost-recovery basis, and has operated at a deficit for the past four years. These fee changes will permit the ASC to maintain its current operations; no significant changes to the ASC’s expenditures are planned.
“With significant changes in the size and complexity of Alberta’s capital market over the past ten years, the proposed changes are essential for the ASC to continue to fulfill our mandate of ensuring a fair and efficient capital market and protecting investors,” said Tom Cotter, interim Chair and Chief Executive Officer of the ASC. “Acknowledging that these changes come during a difficult financial period in Alberta, we believe the new fee structure represents an appropriate balance between the necessity of balancing the ASC’s budget with any impact increased regulatory costs may have on market participants.”
Some of the proposed changes from existing requirements include:
- change from a fixed-fee to a participation-fee model for most reporting issuers based on market capitalization
- introduction of participation fees for specified regulated entities based on either its Canadian trading share or a fixed fee, depending on the nature of the entity, and whether they service securities or derivatives markets;
- different fees for filing prospectuses for a mutual fund and any other prospectus;
- elimination of fees based on proceeds from either a distribution of securities or exempt distribution for reporting issuers that are not investment funds;
- increases in registration fees for registered firms and individuals; and
- introduction of fees for international dealers and advisers.
Except for an increase to some late fees, the proposed fee changes and increases are the first the ASC has introduced since 2006.
The 75-day comment period will end on January 18, 2016. Pending Ministerial approval, the proposed rule is scheduled to come into force December 1, 2016.
A copy of ASC Rule 13-501 Fees can be found on the ASC website at www.albertasecurities.com.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
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