OSC Staff Notice: 33-713 - Registrant Regulatory Filings

ONTARIO SECURITIES COMMISSION STAFF NOTICE 33-713

REGISTRANT REGULATORY FILINGS

Staff of the Ontario Securities Commission ("Staff") remind registrants of the regulatoryfiling requirements imposed on them pursuant to both the Securities Act (Ontario)(the"Act") and the Regulation made under the Act (the "Regulation"). For example,pursuant to section 21.10 of the Act and section 139 of the Regulation most non-SROmembers must file annual audited financial statements and other regulatory filingsprescribed by the regulations within ninety days after the end of their financial year.Most registrants must also maintain certain minimum capital and other regulatoryrequirements, as prescribed by sections 107 to 112 of the Regulation.

Staff have noted that non-SRO registrants are at times deficient in meeting theirregulatory filing requirements. These deficiencies include failure to file auditedfinancial statements, late filings of audited financial statements or filings with a qualifiedaudit opinion or a capital deficiency reported.

Staff stress the importance of non-SRO registrants meeting their regulatory filingrequirements on a timely and complete basis. Staff are treating regulatory filingdeficiencies as a significant issue to be addressed as part of the Commission'sobjective to strengthen the Compliance-Enforcement continuum.

Consequences of deficient regulatory filings could include the imposition of terms andconditions on a non-SRO registrant or the suspension of registration. Some examplesof possible terms and conditions that might be imposed on a non-SRO registrant are:

1. A requirement to file unaudited interim financial statements and capitalcalculation on a monthly basis.

2. An increase in the required minimum free capital to be maintained at all times.

3. A prohibition on the opening of any new branch/sub-branch offices,hiring/registering any new salespeople, opening of any new customer accountsor changing in any material respect the inventory positions of the registrant.

For further information, please contact:

Christina Forster
Senior Accountant
Compliance
(416) 593-8061

Elle Koor
Senior Accountant
Compliance
(416) 593-8077

Felicia Tedesco
Senior Accountant
Compliance
(416) 593-8273

Barbara Fydell
Legal Counsel
Market Regulation
(416) 593-8253

May 19, 2000