How OBSI determines and charges fees to participating firms
OBSI is a not-for-profit organization that operates on a cost recovery basis.
OBSI's budget and the allocation of this budget between the different industry sectors that use OBSI's services is approved by OBSI's Board of Directors each September. This allocation is founded on the principle that no one sector or registrant category should subsidize another.
For fee purposes, OBSI has four industry sectors:
- Banks and deposit taking institutions
- Investment firms that are members of a self-regulatory organization (SRO), which are the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA);
- Investment firms that are not members of an SRO, which includes portfolio managers (PMs), exempt market dealers (EMDs), Restricted Portfolio Managers, Restricted Dealers and Investment Fund Managers; and
- Scholarship plan dealers (SPDs).
Sector Allocation
The allocation of the budget among the four industry sectors is based on the total number and complexity of the cases opened for each sector in the previously completed year.
Once the budget has been allocated to each sector, fees for each firm in the sector are determined. This determination is made on the basis of firm size as described below.
Bank fees
For banks and other deposit-taking firms, the banking sector allocation is divided among institutions on the basis of their self-declared Canadian banking assets relative to other banks in the most recent benchmark year. Our current benchmark year is 2016. Banks and deposit taking institutions with assets under $3 billion and foreign bank branches with no recent complaints history pay a flat annual fee of $1,250. OBSI invoices each bank directly on an annual basis.
| See a list of OBSI's participating federally regulated banks and the membership fees they pay. |
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As an approved External Complaints Body (ECB), OBSI is required to disclose fees paid by participating federally regulated financial institutions in the banking sector. View the list of federally regulated banks and their fiscal year 2017 membership fees. |
SRO member fees
For the SRO investment sector, there is a further allocation between IIROC and MFDA based on their proportionate share of cases opened over a trailing eight quarter period. Both IIROC and MFDA then allocate firm-specific fees among their firms using their own membership payment calculation methodology. The SROs send out the invoices to participating firms quarterly on behalf of OBSI. Firms then make payments directly to OBSI.
Non-SRO member and SPD fees
For all other investment firms, fees are paid based on each firm's number of registered representatives. The per representative fee is determined by dividing the sector's budget allocation by the total number of representatives reported for the sector in the previous year. To determine their fees, firms log onto OBSI's online firm portal and use the fee calculator to input their total number of registered representatives for the current fiscal year (excluding those representatives that work exclusively in Quebec or deal exclusively with permitted clients). An invoice is created and firms pay OBSI directly.