The latest effort to devise a national securities regulator cost a little over $4 million in its first year of operation, according to the Canadian Securities Transition Office’s annual report.

The CSTO, which has drafted a proposed new securities act and come up with a transition plan for a new national regulator in the past year, published its annual report on Monday.

The report covers the eight and half month period from its startup in mid-July 2009 to its fiscal year end of March 31. In that period, the CSTO received funding of $5.4 million from the federal government, and had operating expenses of $4.3 million.

Its expenditures mostly went on salaries and consulting services, each accounted for just over $1.8 million in operating expenses. The next largest line item, travel and consultation hosting, totaled less than $300,000. Other expenses include office space, telecommunications and administration. At March 31, the CSTO had 17 full-time and part-time staff and offices in Toronto and Vancouver.

The report says that the operating expenses came in $1.1 million lower than its budget for the period because of lower than expected staffing levels, later timing of staff additions, and lower travel expenses, among other factors.

For fiscal 2010-2011, it reports that the government has provided another $13.3 million in funding. This will bring the total funding so far to $18.7 million, representing just over half of the total $33 million budgeted under the Canadian Securities Regulation Regime Transition Office Act to fund its operations during the three-year term of its mandate.

IE