The Canadian Securities Administrators has approved the Investment Industry Regulatory Organization of Canada’s (IIROC) model for a more transparent and consistent way of managing cost-recovery fees for debt market oversight.
The model aims to recover costs associated with IIROC's debt market oversight activities, including the operation of a new system that will facilitate the collection and analysis of detailed debt trade reports. This will include fees for all transaction types, which should mean a lower cost per-unit that will benefit investors and support the principle of industry competitiveness.
The repo transaction portion of the fees will also be reduced by cost recoveries from the Bank of Canada and IIROC will implement a late filing fee, which will be based on the additional effort required to input the late data, make corrections and perform appropriate surveillance.
A new rule for debt transaction reporting is also being introduced. The rule concerns dealer members and the reporting of their transactions in relation to Market Trade Reporting System 2.0.
It was brought in to help further align the regulation board with its guidelines of fairness, transparency and industry competitiveness.
IIROC will review the fee model after one or two years to ensure it continues to align with these guiding principles.
The model will take effect from November 1.