The Alberta Securities Commission (ASC) announced today that it will adopt ASC Rule 13-501 Fees, subject to Ministerial approval, which will replace the ASC’s current fee schedule.
The Rule establishes 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 also establishes a new participation fee model and recognition fees for specified regulated entities, such as exchanges, quotation and trading reporting systems and clearing agencies.
Except for an increase to some late filing fees, the fee changes and increases are the first the ASC has introduced since 2006. As the ASC operates on a cost-recovery basis, and has operated at a deficit for the past five years, the fee changes will permit the ASC to maintain its current operations; no significant changes to the ASC’s expenditures are planned.
In November 2015, ASC Rule 13-501 was released for a 75-day comment period that ended on January 18, 2016. The five comment letters received were reviewed before the Rule was finalized. Since the Rule was released for comment, the ASC has identified ways to lower operational costs and has reduced some of the new fees in the Rule.
“Over the past decade, the ASC’s regulatory obligations have increased due to significant changes in the size and complexity of Alberta’s capital market, and these fee changes are required for the ASC to continue to ensure the integrity of the market and protect investors,” said Tom Cotter, interim Chair and Chief Executive Officer of the ASC. “In enacting these fee changes during a difficult financial period in Alberta, we strove to find a balance between meeting the ASC’s monetary needs and the impact increased regulatory costs may have on market participants.”
Subject to Ministerial approval, the Rule is scheduled to come into force December 1, 2016.
A copy of ASC Rule 13-501 Fees and the ASC Notice of Approval 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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