The Alberta Securities Commission says that during the third quarter ended December 31, 2005, its net loss was $881,000 compared to a net loss of $951,000 in the prior year comparable three-month period.

Year to date losses are $2,353,000 compared to $1,822,000 in the prior period. Third quarter revenues increased by $443,000 compared to the prior period as a result of increased securities distributions in Alberta and related fees. Expenses for the same period increased $373,000 primarily because salary costs increased $200,000 and there were $179,000 of unusual professional fees.

The ASC says that year to date financial results were significantly stronger than the provincial government approved budget targets for the commission. Revenues and administrative penalty receipts exceeded budget by approximately $2.6 million primarily because investment income exceeded budgeted returns by $1.1 million, fees for Alberta securities distributions exceeded budget by $1.1 million and administrative penalty receipts, that were not budgeted, approximate $400,000.

In addition, year-end expenses are projected to be $2.0 million below budget because of staff vacancies, rescheduling of investor education programs and reductions in expenditures budgeted for Canadian Securities Administrators and Investment Dealers Association professional services and certain technology, compliance and policy research projects.

“In summary, these revenue and expense forecast variances are expected to result in a year-end loss of approximately $1 million compared to the budgeted loss of $5.375 million,” the ASC says.

Fee increases are proposed, commencing October 1 in the fiscal 2007 budget. The fee increases require public consultation that is tentatively scheduled for mid 2006 and subsequent provincial government approval.