Back to SearchHow OBSI fees are determined
Participating firm fees are set annually by the OBSI Board of Directors in accordance with our corporate Bylaw. As a not-for-profit organization, participating firm fees fund all our operations and are set on a cost-recovery basis.
Each year, we establish a fee target based on our budget for the coming year and divide that fee target between the sectors of firms that use our service. The division of fees among the different sectors is based on the proportion of OBSI resources that each sector has used in the previous year, which we determine by analysing each sector’s recent case volumes and case complexity. Our board also considers fairness and the impact of fee changes on member firms when setting fees. A guiding principle is that no sector or registrant category should subsidize another. Therefore, fees each year can change, even when our budget has remained stable. You can find more information about how our fees are determined here.
2022 budget increases necessary to deal with continued rising case volumes
For the past decade, OBSI’s budget has been prudently managed within a narrow range, respecting the needs of firms and consumers for an efficient, effective service. Within this budget, in recent years we have made substantial operational improvements and built-up our organization’s reserve funds to target levels.
For 2022, we expect to continue to respond to increased case volumes due to market volatility, financial uncertainty related to the coronavirus pandemic, and regulatory shifts. To deal effectively with this case volume, we will need to ensure that we have adequate staff resources to maintain our service levels.
Our 2022 budget will reflect this need for additional staff and as a result is approximately 10% higher than our 2021 budget. Virtually all of this increase is related to increased personnel requirements. The potential for fee increases was first discussed in our July bulletin, which you can find here.
2022 participating firm fees
As a result of the requirement for increases in our operational budget, our fee target for participating firms will increase by approximately 21% overall in 2022.
The reason that fee increases are higher than budget increases for 2022 is that last year, due to the uncertain impacts of the pandemic on participating firms, we froze overall fees and used our operating reserve to fund our increased expenses as case volumes increased throughout 2021.
Notably, our case volumes have increased approximately 70% in this same 2-year period.
Outlined below are the fees by sector, which are determined based on each sector’s relative case volume and complexity as described above:
2022 budget increases necessary to deal with continued rising case volumes
For the past decade, OBSI’s budget has been prudently managed within a narrow range, respecting the needs of firms and consumers for an efficient, effective service. Within this budget, in recent years we have made substantial operational improvements and built-up our organization’s reserve funds to target levels.
For 2022, we expect to continue to respond to increased case volumes due to market volatility, financial uncertainty related to the coronavirus pandemic, and regulatory shifts. To deal effectively with this case volume, we will need to ensure that we have adequate staff resources to maintain our service levels.
Our 2022 budget will reflect this need for additional staff and as a result is approximately 10% higher than our 2021 budget. Virtually all of this increase is related to increased personnel requirements. The potential for fee increases was first discussed in our July bulletin, which you can find here.
2022 participating firm fees
As a result of the requirement for increases in our operational budget, our fee target for participating firms will increase by approximately 21% overall in 2022.
The reason that fee increases are higher than budget increases for 2022 is that last year, due to the uncertain impacts of the pandemic on participating firms, we froze overall fees and used our operating reserve to fund our increased expenses as case volumes increased throughout 2021.
Notably, our case volumes have increased approximately 70% in this same 2-year period.
Outlined below are the fees by sector, which are determined based on each sector’s relative case volume and complexity as described above:
- Banks: The fees for the banking sector will increase by 20% relative to 2021. The minimum fee remains unchanged.
- IIROC and MFDA firms: The fees for IIROC and MFDA firms will increase by 20%.
- Exempt Market Dealers & Portfolio Managers: The fees for this sector overall will remain unchanged from 2021 at $132 per representative. Previously, our fees were $142 in 2020, $155 per representative in 2019, $78 per rep in 2018, and $92 per rep in 2017.
- Scholarship Plan Dealers: The fee per representative for 2022 will be $185. This compares with 2021 fees of $129 per representative, 2020 fees of $140 per representative, 2019 fees of $185 per representative, and 2018 fees of $183 per representative.
Expect to hear from us in November
OBSI’s fiscal year begins on November 1. Your firm can expect to receive instructions in November on how to complete your membership renewal.
Firms who are invoiced annually or quarterly will be contacted with their invoices and provided with options for completing their payments.
Firms who use the OBSI Firm Portal to calculate and process their membership renewals will receive detailed information and instructions for logging into the Portal and paying via the Portal once the form is available on November 1, 2021.
If you have any questions or concerns please email membership@obsi.ca or call 1 888 451-4519 x 2418.
OBSI’s fiscal year begins on November 1. Your firm can expect to receive instructions in November on how to complete your membership renewal.
Firms who are invoiced annually or quarterly will be contacted with their invoices and provided with options for completing their payments.
Firms who use the OBSI Firm Portal to calculate and process their membership renewals will receive detailed information and instructions for logging into the Portal and paying via the Portal once the form is available on November 1, 2021.
If you have any questions or concerns please email membership@obsi.ca or call 1 888 451-4519 x 2418.
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