Source: http://www.osc.gov.on.ca/en/SecuritiesLaw_csa_20130124_13-102_rfc-pro-amd.htm
Timestamp: 2019-02-19 20:27:07
Document Index: 81323216

Matched Legal Cases: ['art 1', 'art 2', 'art 3', 'art 4', 'art 5', 'art 2', 'art 2']

CSA Notice and Request for Comment: Proposed Amendments Facilitating CSA Information Technology Arrangements -
CSA Notice and Request for Comment: Proposed Amendments Facilitating CSA Information Technology Arrangements
Proposed Amendments Facilitating CSA Information Technology Arrangements
The Canadian Securities Administrators (the CSA or we) are publishing for a 90 day comment period the following material (the Proposed Material):
• proposed National Instrument 13-102 System Fees for SEDAR and NRD (NI 13-102), as set out in Annex A,
• proposed amendments to National Instrument 13-101 System for Electronic Document Analysis and Retrieval (SEDAR) (NI 13-101), as set out in Annex C,
• proposed amendments to National Instrument 31-102 National Registration Database (NI 31-102), as set out in Annex D, and
• proposed amendments to National Instrument 55-102 System for Electronic Disclosure by Insiders (SEDI), as set out in Annex E.
The Proposed Material reflects the amendments necessary in connection with the scheduled expiry of existing agreements with CDS Inc. to operate the System for Electronic Documents Analysis and Retrieval (SEDAR), the System for Electronic Disclosure by Insiders (SEDI) and the National Registration Database (NRD) (collectively, the CSA National Systems) on behalf of the CSA. NI 13-102 will consolidate and replace the existing filing service charge schedules under the SEDAR Filer Manual and NRD User Guide. As well, we have taken advantage of cost saving opportunities under the new arrangements to reduce fees. Based on recent filing patterns, we expect system fees to decline in approximately 40% of SEDAR filing situations and in approximately 24% of NRD filing situations.
The text of NI 13-102 is contained in Annex A of this notice. Annex B of this notice compares the fees in the existing filing service charge schedules to the fees in NI 13-102. Other related proposed amendments are contained in Annexes C, D and E of this notice. This material is also available on websites of CSA jurisdictions, including:
CDS Inc. currently operates the CSA National Systems for the benefit of the CSA. The agreements with CDS Inc. to operate the CSA National Systems are scheduled to expire in October 2013 and a new service provider is being secured to take over operations. In this regard, a number of minor changes to the existing rules governing the CSA National Systems are required. In addition, we are consolidating the existing filing service charge schedules under the SEDAR Filer Manual and NRD User Guide into NI 13-102.
The proposed system fees in NI 13-102 are structured in a substantially similar way to the fees in the existing filing service charge schedules. "First jurisdiction" filing fees have been replaced with filing fees payable to the applicable filer's principal regulator, with the amounts unchanged. Fees payable for filings in additional jurisdictions have been substantially reduced. Maximum fees for filing in all jurisdictions will not increase, but fewer filers will be subject to the maximum fee due to the reduction in additional jurisdiction fees and the way in which these fees will be applied under the proposed system.
From a user perspective, we do not expect any significant changes to the current payment process. The system fees will continue to be collected on-line through the CSA National Systems and paid into a special purpose pool of funds, managed by one or more designated CSA members, for the payment of costs and expenses associated with the operation and development of the CSA National Systems (including any new or updated national information technology systems that may be developed for the CSA).
NI 13-102 sets out system fees payable to Canadian securities regulatory authorities, largely in connection with specified filings. It consolidates and replaces the existing system fee schedules found in the SEDAR Filer Manual and NRD User Guide. The proposed system fees result in a reduction to the overall fees charged under the current arrangements. System fees would continue, with the exception of NRD enrolment fees, to be paid on-line through SEDAR and NRD.
The other proposed amendments reflect the changes necessary as a result of the change of the SEDAR filing service contractor, SEDI operator and NRD administrator from CDS Inc. to a new vendor.
Summary of the Proposed Material
Part 1 of NI 13-102 sets out definitions used in the proposed Instrument. It also ensures that the proposed Instrument prevails over any conflicting provision in NI 13-101 or NI 31-102.
Part 2 of NI 13-102, in conjunction with Appendices A and B of the proposed Instrument, sets out the SEDAR system fees payable to each Canadian securities regulatory authority.
Part 3 of NI 13-102 sets out the NRD system fees payable to each Canadian securities regulatory authority.
Part 4 of NI 13-102 provides that the fees in section 3, 4, 6 or 7 of the proposed Instrument are all paid through SEDAR or NRD, as the case may be.
Part 5 of NI 13-102 allows exemptions to be granted under the Instrument.
The proposed system fees, when implemented, will yield benefits in the form of lower system costs for many filers. Based on recent filing patterns, we expect system fees to decline in approximately 40% of SEDAR filing situations and in approximately 24% of NRD filing situations. In all remaining filing situations, there will be no change in system fee costs. We expect system fee costs to decline by 6.5% on average for SEDAR filings and by 6.6% on average for NRD filings based on recent filing patterns.{1} We have also eliminated the subscription fees that are currently required to be paid for SEDAR filer software licences.
The CSA believes the proposed system operation and fee changes will have no impact on service levels or the general operation and development of the CSA National Systems.
Please submit your comments in writing on or before April 24, 2013. If you are not sending your comments by email, please send a CD containing the submissions (in Microsoft Word format).
Legal Registries Division, Department of Justice, Government of Nunavut
As described above, Annexes A, C and D contain the Proposed Material. Annex B compares the existing filing service charge schedules to the fees in NI 13-102.
Where applicable, Annex F contains local material.
{1} Averages calculated by weighting the fee changes for each filing type by that filing type's share of all filings made over the last 12 months. For further information on the fee changes, see Annex B.
PROPOSED NATIONAL INSTRUMENT 13-102
1. (1) In this Instrument,
"issuer bid"
(a) except in Ontario, means an issuer bid to which Part 2 of Multilateral Instrument 62-104 Take-Over Bids and Issuer Bids applies, and
(b) in Ontario, means a "formal issuer bid" as defined by subsection 89(1) of the Securities Act (Ontario);
"take-over bid"
(a) except in Ontario, means a take-over bid to which Part 2 of Multilateral Instrument 62-104 applies, and
(b) in Ontario, means a "formal take-over bid" as defined by subsection 89(1) of the Securities Act (Ontario).
(2) In this Instrument, each term appearing in Column 1 of the Table below has the meaning ascribed to it in the Instrument or Form shown in the same row in Column 2 of the Table.
Specified Instrument or Form
firm filer
MJDS prospectus
2. If there is any conflict or inconsistency between this Instrument and National Instrument 13-101 System for Electronic Document Analysis and Retrieval (SEDAR) or National Instrument 31-102 National Registration Database, this Instrument prevails.
Local system fees
3. In Québec, a person or company making the type of filing described in Column C of Appendix A with the Autorité des marchés financiers must pay to the Autorité des marchés financiers the system fee specified in Column D of that Appendix.
4. A person or company making the type of filing described in Column B of Appendix B of the category in Column A of that Appendix must pay to the securities regulatory authority with which the filing was made the system fee specified in Column C or D of that Appendix, as the case may be.
NRD SYSTEM FEES
5. A firm filer must pay to the securities regulatory authority of its principal jurisdiction an enrolment fee of $500 upon enrolment in NRD.
NRD submission fee
6. (1) A firm filer must pay an NRD system fee in respect of an individual filer to each securities regulatory authority if
(a) it is the sponsoring firm for the individual filer, and
(b) through the filing of a Form 33-109F4, the individual filer registers or reactivates their registration with the securities regulatory authority.
(2) The fee under subsection (1) payable to each securities regulatory authority by a sponsoring firm in respect of an individual filer is,
(a) if the securities regulatory authority is the principal regulator of the individual filer, $75.00, and
(b) in any other case, $20.50.
Annual NRD system fee
7. On December 31 of each year, a firm filer must pay an annual NRD system fee to a securities regulatory authority equal to the total of:
(a) if the securities regulatory authority in a jurisdiction is the principal regulator of one or more individuals who are individual filers on that date and for which the firm filer is the sponsoring firm in that jurisdiction, the product of $75.00 and the number of those individuals, and
(b) if there are individual filers on that date for which the securities regulatory authority in a jurisdiction is not the principal regulator and for which the firm filer is the sponsoring firm in that jurisdiction, the product of $20.50 and the number of those individuals.
8. A fee under section 3, 4, 6 or 7 must be paid through SEDAR or NRD, as the case may be.
9. (1) The regulator or the securities regulatory authority may grant an exemption from this Instrument, in whole or in part, subject to such conditions or restrictions as may be imposed in the exemption.
10. This Instrument comes into force on •, 2013.
Appendix A -- Local SEDAR System Fees
System Filing Fee
Prospectus distribution to person outside Québec, if made from Québec (section 12 of Securities Act (Québec))
Appendix B -- Other SEDAR System Fees
System Fee Payable to Principal Regulator
System Fee Payable to Each Other Securities Regulatory Authority
Annual filing service fee for continuous disclosure -- investment funds
Investment funds (continuous disclosure)
Note: Excludes the Annual Information Form and all other filings listed separately in Rows 3 to 21.
Annual filing service fee for continuous disclosure
Continuous disclosure for reporting issuers (other than investment funds)
Investment fund issuers / securities offerings
Simplified prospectus, annual information form and Fund Facts (National Instrument 81-101 Mutual Fund Prospectus Disclosure)
$585.00, which applies in total to a combined filing, if one annual information form and one simplified prospectus are used to qualify the investment fund securities of more than one investment fund for distribution
$162.50, subject to the application provision described in Column C
Investment fund issuers / continuous disclosure
Annual information form (National Instrument 81-106 Investment Fund Continuous Disclosure) for investment fund if not a short form prospectus issuer
Annual information form (National Instrument 81-106 Investment Fund Continuous Disclosure) for investment fund if short form prospectus issuer
Investment fund issuers / exemptions and other applications
Applications (National Instrument 81-102 Mutual Funds)
Exemptions and other applications in connection with a prospectus filing
Other issuers / securities offerings
Short form prospectus (National Instrument 44-101 Short Form Prospectus Distributions)
Shelf prospectus (National Instrument 44-102 Shelf Distributions)
MJDS Prospectus (National Instrument 71-101 The Multijurisdictional Disclosure System)
Rights offering material
Prospectus governed by CPC instrument (TSX Venture Exchange)
Other issuers / continuous disclosure
Annual information form, if neither an investment fund nor a short form prospectus issuer
Annual information form, if a short form prospectus issuer (other than an investment fund)
Exemptions and other applications (if not an investment fund)
Exemptions and other applications in connection with prospectus filing
Other issuers / Going Private / Related Party Transactions
Going private transaction filings
Related party transaction filings
Other issuers/securities acquisitions
Issuer bid filings
Third party filers/third party filings
Take-over bid filings
COMPARISON OF EXISTING CHARGES TO PROPOSED FEES IN NI 13-102
SEDAR filing service subscriber fees
Charge for additional SEDAR filer software licenses
SEDAR local system fees
(Appendix A of NI 13-102)
Reference in NI 13-102
Québec fee for distribution outside Québec
(Appendix B of NI 13-102)
Single Jurisdiction Issuer (issuer which is a reporting issuer in only one jurisdiction)
Multi-Jurisdiction Issuer (an issuer which is a reporting issuer in more than one jurisdiction)
$705.00, plus $74.00 for each additional jurisdiction in which the issuer is a reporting issuer, to a maximum of $1,593.00
Other SEDAR system fees
Simplified prospectus, AIF and Fund Facts (investment funds)
First/local jurisdiction fee
Fee per add'l jurisdiction
Long form prospectus (investment funds)
Investment funds AIF (not a short form prospectus issuer)
Investment funds AIF (if short form prospectus issuer)
Investment fund exemptions and other applications (NI 81-102)
Rows 8, 17, 20 and 21
Exemptions and other applications in connection with a prospectus filing; issuer bid filings and take-over bid filings
Rows 9 to 11
Other short form prospectuses, shelf prospectuses and MJDS prospectus
Long form prospectus or prospectus governed by CPC instrument
Rows 13, 19 and 20
Rights offering material, going private transaction filings and related party transaction filings
AIF if neither an investment fund nor a short form prospectus issuer
AIF, if a short form prospectus issuer (other than an investment fund)
NRD enrolment fee
s. 6(2) and 7
NRD submission and annual systems fee
2. Section 1.1 is amended by, in the definition of "SEDAR filing service contractor", replacing "CDS INC." with "___________".
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 31-102
2. Section 1.1 is amended by, in the definition of "NRD administrator", replacing "CDS INC." with "_________".
3. Paragraph 4.5(e) is amended by replacing "payable to CDS INC. in Canadian funds, to the firm's principal regulator" with "payable to _________ in Canadian currency, made payable to ____________".
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 55-102
2. Section 1.1 is amended by, in the definition of "SEDI operator", replacing "CDS INC." with "_________".
Before you may make a valid SEDI filing, you must deliver a manually signed paper copy of the completed user registration form to the SEDI operator for verification purposes. To satisfy this requirement, it is preferred that you print a copy of the online user registration form once you have certified and submitted it. You must deliver a manually signed and dated copy of the completed user registration form via prepaid mail, personal delivery or facsimile to the SEDI operator at the following address or fax number, as applicable:
[Insert appropriate address -- to be determined]
or, if you are resident in the province of Quebec, to the SEDI operator at the address above, or to:
or at such other address(es) or fax number(s) as may be provided on the SEDI web site
(www.sedi.ca).
Questions may be directed to the SEDI operator at 1-800-219-5381 or such other number as may be provided on the SEDI web site.
Note: Before an individual registering as a SEDI user may make a valid SEDI filing, the registering individual must deliver a manually signed paper copy of the completed user registration form to the SEDI operator for verification purposes. It is preferred that the registering individual print a copy of the online version using the "Print" function provided for this purpose in SEDI. The signed paper copy must be delivered by prepaid mail, personal delivery or facsimile to:
or, if you are resident in the province of Quebec, to the SEDI operator at the address above, or to
LOCAL ONTARIO ANNEX
Authority for Proposed Materials
The statutory rule-making authority in Ontario for the Proposed Materials is provided under subsection 143(1) of the Securities Act:
• Paragraph 1 of that subsection provides the Ontario Securities Commission with authority to prescribe requirements in respect of registration.
• Paragraph 39 of that subsection provides the Commission with authority in connection the "media, format, preparation, form content, execution, certification, dissemination and other use, filing and review" of documents required under or governed by the Securities Act.
• Paragraph 45 of that subsection provides the Commission with authority to establish requirements for and procedures in respect of the use of an electronic or computer-based systems for the filing, delivery or deposit of documents or information.
• Paragraph 49 of that subsection provides the Commission with authority to permit or require, including through variations to the Securities Act, methods of filing or delivery by specified persons of specified material required under or governed by Ontario securities law.
The Commission relies on no significant unpublished study, report or other written materials in proposing NI 13-102 or the other amendments described in Annexes C, D or E.