The Investment Industry Regulatory Organization of Canada has published a proposal for a cost-recovery fee model for debt market oversight.
Debt market activity has grown in recent years, says IIROC, which is why it published a new debt transaction reporting rule as part of a new framework designed to bring greater regulatory transparency to the asset class.
The proposed cost-recovery fee model is designed to address the costs associated with IIROC’s debt market oversight activities, including the operation of a new system that’ll help with the collection and analysis of detailed debt-trade reports.
Also, IIROC’s established an industry working group that represents a significant cross-section of IIROC dealers. This group will provide advice and guidance in the development of the new proposed fee model.
The working group has reviewed best practices in other jurisdictions and considered several alternative fee models. The proposed transaction-based fee model includes fees for all transaction types, which will result in a low per-unit cost that’ll benefits investors and support the principle of industry competitiveness.
The proposal is out for comment for 60 days, ending February 9, 2015. Once approved, changes would take effect November 1, 2015.