The Alberta Securities Commission lost $939,000 in its fiscal third quarter ended December 31 due to a drop in revenue. The regulator reported a year-to-date net loss of $1,290,000.

This compares to a net loss of $40,000 in the same quarter a year ago, and $1,008,000 in net income for the comparable nine-month period.

While year-to-date revenues are less than the prior periods and expenses greater, both revenues and expenses are below budget for fiscal 2003.

Revenue reductions are the result of decreases in investment income, fees and settlement recoveries, while expenses have primarily increased as a result of staff salaries, one time CSA-related National Registration system costs, external consultation and Edmonton Office close expenses. These operating trends are expected to continue for the remainder of the year.

Revenue is down $469,000 year-to-date, compared to the prior period, primarily due to lower investment income of $222,000 arising from negative equity fund investment performance; and lower settlement recoveries of $360,000 reflecting the variable nature of settlement revenues.

The year-to-date increase in expenses result from: increases in salaries and benefits; increases in rent; contract service increases for the oil and gas disclosure initiative, and increased hearing and enforcement consultations; and unbudgeted cost overruns for the National Registration Database System.