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November 18, 2014
OSC Capital Markets Participation Fees Calculation - Frequently Asked Questions (FAQs)
Following the conclusion of the Registrant Outreach sessions on the Participation Fee Calculation held on November 4, 2014 (webinar) and November 6, 2014 (in-person), we received additional inquiries from participants. In order to assist firms with completing the participation fee calculations correctly, we consolidated the common questions into the FAQs below.
Please note that the due date for registered firms and exempt international advisers and exempt international dealers to file Form 13-502F4 Capital Markets Participation Fee Calculation is December 1, 2014. Participation fees are due on December 31, 2014. Late fees will apply for forms and participation fees submitted after the due dates.
Unregistered investment fund managers are required to file Form 13-502F4 and pay the participation fees no later than 90 days after the firm's fiscal year end. Late fees will apply for participation fees submitted after the due date.
Frequently Asked Questions
Q: What is my reference fiscal year for the participation fee calculation?
A: Please refer to pages 9 to 13 of the presentation slide deck for examples: http://www.osc.gov.on.ca/documents/en/Dealers/ro_20141104_participation-fees.pdf
Q: My firm has been registered for many years and has a December 31 year end. As I understand it, the reference fiscal year is the same as last year, i.e. December 31, 2011. Do I use the same 2011 figures for the participation fee calculation this year?
A: Yes. Each line should contain the same information as last year's filing. The only change is the amount of the participation fee due since it reflects the participation fee schedule effective April 7, 2014.
Q: My firm was incorporated many years ago, but our firm only became registered in Ontario in 2014.
(i) Do we have to pay participation fees in 2014?
(ii) If so, do we calculate our participation fees based on our December 31, 2013 year-end since our December 31, 2014 year has not been completed?
A: (i) Yes, the firm is required to calculate and pay participation fees for 2014.
(ii) By December 1, 2014, the firm is required to calculate participation fees based on its estimated revenues for the fiscal year ending December 31, 2014. No firms should be using a 2013 fiscal year to calculate participation fees due December 1, 2014.
Q: If my firm is required to use a fiscal year ending in 2014 (e.g. December 31 year-end) and is required to provide a good faith estimate, once the financial statements are finalized, will I still be required to file Form 13-502F5 Adjustment for Fee for Registrant Firms and Unregistered Exempt International Firms even if there is no change in the amount of participation fee?
A: No, Form 13-502F5 is not required if the amount of participation fee payment does not change (Section 3.5(2) of the OSC Rule 13-502 Fees).
Q: Where can I access the 2014 forms?
A: For up-to-date links, please refer to the Participation Fees section of the following Forms and Documents page: http://www.osc.gov.on.ca/en/Dealers_forms_index.htm
Q: Which exchange rate do I use to convert foreign currency to Canadian dollars when completing the participation fee calculation?
A: The FX rate used will be the rate as of the reporting date. For example, if the reference fiscal year used is December 31, 2011, the FX rate will be the daily noon exchange rate on December 31, 2011 from the Bank of Canada website (Refer to section 5.1 of OSC Rule 13-502 Fees).
Q: My firm does not have an NRD bank account. Can I pay participation fees by cheque or by wire transfer?
A: Yes. Cheques should be made payable to the "Ontario Securities Commission". Please include the firm's name, firm's NRD number, submission ID number and the year to which the payment relates (e.g., 2014 participation fees).
After you have successfully submitted Form 13-502F4 online using the links provided, mail the cheque to:
Ontario Securities Commission
20 Queen Street West, 22nd Floor
Toronto, ON M5H 3S8
Attention: Manager, Registration
For wire transfer instructions, please email email@example.com.
If you have further questions, please contact us by calling 1-877-785-1555 or 416-593-8314 or e-mailing firstname.lastname@example.org.