In mid-September the OSC’s Registrant Outreach held a seminar that provided registrants, unregistered capital markets participants and other industry participants with a refresher on the calculation and filing of participation fees in advance of the December 1, 2015 filing deadline.
During the seminar, OSC staff highlighted changes to OSC Rule 13-502 Fees applicable to registrants and unregistered capital markets participants, which came into effect on April 6, 2015. These changes include:
- Removal of the use of the reference “fiscal year” (for 2015, all registrants and unregistered capital markets participants should calculate fees based on the firm’s financial year ending in 2015)
- Change in the definition of “capital markets activities” (meant to address the common error made by firms that deduct all non-Ontario revenues even if they are considered capital markets activities, and to reflect that IFMs are required to be registered)
- Change in the definition of “Ontario percentage” (meant to simplify and clarify the term by removing references to various tax legislation tied to its previous definition)
- Amendments to filing and payment deadline for unregistered IFMs (meant to align the fee calculation and payment time with registrants and exempt international firms)
- Requirement for the CCO (or person acting in a similar capacity, in the case of unregistered capital markets participants) to attest to completeness and accuracy of the Form 13-502F4 calculation
- Late fee amendments (including increase in late fee cap for all forms or documents to be filed from $5,000 to $10,000 for the three largest categories of registrants with Ontario revenues over $500M)
- No refunds (clarifies that, absent exceptional circumstances, the OSC will not issue a refund if the request is made later than 90 days after the fee was required to be paid)
- Indirect avoidance of Rule (clarifies the OSC’s views with respect to fee avoidance)
- Participation fee rates (will be kept at the 2014 level until 2016)
Staff reviewed filing requirements for the capital markets participation fee calculation, led participants through Form 13-502F4 and provided examples of common errors related to the calculation and filing of the participation fees.