The Alberta Securities Commission today reported that it lost $323,000 in its fiscal 2006 first quarter ended June 30.
The loss compared to a net income of $81,000 in the prior year’s first quarter. The ASC had budgeted for a $2.2 million loss, but revenues were significantly higher than expected, and revenue from administrative penalties is not budgeted.
First quarter revenues, including administrative penalties of $295,000, increased by $657,000 while expenses increased $1,061,000. Year-to-date revenues, including administrative penalty and settlement receipts of $328,000, exceed budget by $1,606,000, and expenses exceed budget by $171,000 (not including a $482,000 contingency provision).
The first quarter expense increases are primarily due to salary and benefit increases that reflect salary adjustments of 4.1%, a retiring allowance and vacation payouts for staff departures, and unusual professional fees that arise from special investigations undertaken by the independent members of the commission. The commission approved a $0.95 million contingency application for these “unusual professional fees”.
Revenues are greater than budget primarily because of accelerated and increased mutual fund fees, investment income returns that exceed budget and settlement and administrative penalty receipts that are not budgeted.
In the first quarter the ASC saw increased mutual fund distribution fees of $630,000 arising from increased mutual fund sales, and increased investment income and administrative penalty receipts of $540,000; offsetting a decrease of $500,000 in financial statement fees because of the change in filing deadlines.
The commission is forecasting a year-end loss of $3 million or less.
ASC reports small first quarter loss
Says revenue was significantly higher than forecast
- By: James Langton
- August 11, 2005 August 11, 2005
- 14:55