The Alberta Securities Commission reports that during the third quarter ended December 31, 2006, it lost $1,611,000 compared to a net loss of $881,000 in the prior year. However, year to date income was $4,487,000 compared to a $2,353,000 loss in the prior year.

The increased loss in the third quarter is primarily the result of additional expenses of $1,317,000 offset by incremental investment income of $476,000 and settlement receipts of $93,000. “Investment income results reflect strong equity and bond market performance in the quarter returns that exceeded budget by 10% and 3% respectively,” it explains.

However, the commission’s additional costs included; $724,000 for 15 additional staff, a retirement allowance and compensation increases, member fee increases of $154,000 reflecting higher compensation rates and increased member participation in hearing activity, and $478,000 of additional professional services primarily for employee recruitment, enforcement business processes and information technology initiatives.

The third quarter loss was less than the provincial government approved budget target loss of $2,987,000. Fee revenues for Alberta securities distributions exceeded budget by approximately $133,000, the result of continued resource sector financing strength and strong mutual fund sales. Investment income exceeded budget by $578,000 because of a bond market recovery and stronger than anticipated equity markets. Expenses were consistent with budget. Staff vacancies that reduced compensation costs were offset by a third quarter retirement allowance.

Year to date expenses are less than budget because of reductions in planned litigation support, investor education timing variances and staff vacancies, the ASC said. Also, year to date revenues exceed budget because of distribution fee strength, higher investment returns and the settlement of $7.6 million.

The ASC said that its year-end income is forecast to be at least $6.9 million. This is $12.3 million greater than the annual budget loss primarily because of the $7.6 million settlement receipt, fee revenues that will exceed budget by $1.3 million, $0.9 million of incremental investment income, expense reductions from staff vacancies and other areas of $0.4 million and an unused net contingency of $2.1 million.