The Alberta Securities Commission (“ASC”) announced that it will adopt ASC Rule 13-501 Fees (the “Rule”), which will replace the ASC’s current fee schedule.
The Rule introduces a participation fee model (similar to the model in Ontario) that is based on a reporting issuer’s market capitalization and registration class, which fee must be paid annually upon filing annual financial statements. All TSX Venture Exchange listed companies based in British Columbia are reporting both in BC and Alberta. While the participation fees are lower than in Ontario, they do increase costs for reporting issuers.
Market capitalization for all non-investment fund reporting issuers is calculated using the formula set out in the Rule. Generally, non-investment fund reporting issuers with securities that are listed or traded on a market place will be considered Class 1 reporting issuers (see the Fee Rule for the definitions of the classes)
Participation fees for Class 1, 2 and 3B reporting issuers under the Fee Rule are as follows:
| Capitalization for previous fiscal year | Class 1 & Class 2 | Class 3B |
| Under $10 million | $400 | $400 |
| $10 million to under $25 million | $500 | $500 |
| $25 million to under $50 million | $1,200 | $600 |
The Rule is scheduled to come into force December 1, 2016. The Rule can be found here.
If you have questions about being a reporting issuer in Alberta, contact any member of Clark Wilson’s Corporate Finance & Securities Group.
