Moratorium on late fees will apply while the OSC considers streamlining disclosure regime for outside business activities

The Ontario Securities Commission (OSC) has approved amendments to OSC Rule 13-502 Fees and OSC Rule 13-503 (Commodity Futures Act) Fees to implement a moratorium on late fees associated with late disclosures of outside business activities (OBAs). According to the OSC, the moratorium is being adopted in light of comments from registrants regarding the lack of clarity regarding the scope of outside business activities required to be reported under Item 10 of Form 33-109F4 Registration of Individuals and Review of Permitted Individuals. Notably, however, the amendments do not relieve registrants from having to report OBAs during the time the moratorium is in place. As such, OBAs will still have to be disclosed as per existing rules.

Under National Instrument 33-109 Registration Information, a change of any information previously submitted under Item 10 must be reported within ten days, with a $100 per business day late fee applied to late filings. According to the OSC, NI 33-109 will be reviewed in the meantime to assess, among other things, whether the OBA disclosure regime should be streamlined as part of the OSC’s efforts to identify ways to reduce the regulatory burden borne by Ontario issuers, registrants and investors.

The moratorium on late fees will apply from January 1, 2019 to the earlier of (i) the first date that a relevant amendment to NI 33-109 regarding outside business activity disclosure comes into force; and (ii) December 31, 2021.

The amendments came into force on July 17, 2019.