OBSI Membership

• All firms that must join OBSI as a result of NI 31-103 must submit their Company Information Form and have paid their required membership fees no later than August 1, 2014.

• OBSI sends out invoices only after receiving the Company Information Form. This form should be submitted as soon as possible to facilitate invoicing and fee payment before August 1.

OBSI requirements

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OBSI Membership

• OBSI prepared a membership kit for firms that was launched at the same time as the NI 31-103 announcement made by the CSA on December 19, 2013.

• Contains information on OBSI, our processes, guidance on establishing and communicating a complaints-handling process, brochures, as well as the Company Information Form.

Membership kit

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OBSI Membership

• Other documents in the kit include OBSI’s Terms of Reference, Bylaw, and 2013 Annual Report. Firms should familiarize themselves with these documents.

• Web version available at www.obsi.ca under Resource Room -> Resources for Firms.

• Print copies will be mailed after we receive registrant mailing addresses from the CSA. This may not be possible for all jurisdictions.

Membership kit

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OBSI Membership

• OBSI is committed to a fair, transparent and appropriate process for setting fees and allocating costs across our membership.

• In determining membership fees, we build on the principle that no sector or registrant category should subsidize another.

• Each member only pays for the costs associated with resolving their membership category’s complaints, along with their category’s share of administration and overhead costs.

Membership fees

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OBSI Membership

• In consultation with the CSA, OBSI’s fees for firms joining as a result of NI 31-103 were set at $165 per registered dealing or advising representative, including associate advising representatives, per year.

• This fee was determined by developing a budget for the handling of complaints from these new categories of participating firms and dividing this by the number of registered representatives, using registrant numbers provided by the CSA.

Membership fees

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OBSI Membership

• Since the amendments to NI 31-103 were announced, we have worked closely with PMAC on implementation issues, including fees.

Membership fees

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OBSI Membership

• OBSI will exempt from our membership fee calculation those portfolio manager registrants who only deal with permitted clients that are not individuals.

• This will have an impact on the budget OBSI prepared in consultation with the CSA, but based on our projections we believe it is manageable.

• OBSI will assess the actual impact based on the amounts submitted to us by PMs and will determine next year whether to continue with this exemption in 2015-16.

Membership fees

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OBSI Membership

• The challenge is that neither OBSI nor the regulators have information on the exact number of representatives the exemption will affect.

• PMs will self-report this number using a website fee calculator tool we have developed (www.obsi.ca/forms/feecalculator/).

• OBSI will then share this information with the CSA.

Membership fees

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OBSI Membership

• OBSI’s existing budget is around $8 million, a number that has remained stable for the last several years.

• The fees collected from new participating firms represent an increase of approximately 10% in our total budget.

Budget

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OBSI Membership

• OBSI will continue to participate in forums such as this to answer questions and introduce ourselves.

• We will also reach out to all firms directly in the coming months to provide information on joining OBSI.

• Questions can be directed to Tyler Fleming, Director of Stakeholder Relations and Communications, at publicaffairs@obsi.ca or 1-888-451-4519 ext. 2225.

Outreach

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OBSI Membership

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Questions?

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Thank you