OSC seeks comment on proposed fee changes for restricted dealers

TORONTO, Nov. 10, 2023 /CNW/ – The Ontario Securities Commission (OSC) published for comment proposed changes to its fee rules that would establish new fees for restricted dealers or firms that have been permitted to carry on business under terms and conditions imposed by the OSC.

The proposed amendments, if approved, would introduce two new fees for restricted dealers:

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

The OSC continues to observe 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 fees are intended to address and recover these additional regulatory costs.

The OSC is also proposing 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.

Stakeholders are invited to provide comments in writing by February 7, 2024.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at http://www.osc.ca.

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SOURCE Ontario Securities Commission