In a bid to ease the cost burden on smaller market players, the Ontario Securities Commission (OSC) is temporarily cutting fees for smaller firms and issuers.

The OSC said Thursday it will be offering one-time relief on its participation fees for small registered firms (such as dealers and portfolio managers) and reporting issuers.

The commission estimates that the average firm that qualifies for fee relief will save between $235 and $17,275, and qualifying issuers will save between $160 and $13,150. It suggests that most participants will be entitled to relief closer to the lower end of both bands.

OSC Staff Notice 13-704 Applications for Participation Fee Relief for Certain Small Registered Firms and Reporting Issuers sets out the process and eligibility requirements for fee relief, indicating that the process is available to firms and issuers that are in the lowest three participation fee tiers, based on fiscal 2013 data (this would include firms with specified Ontario revenues under $1 million, and reporting issuers with capitalization under $50 million); and, whose Ontario revenues or capitalization has decreased by at least 50% from fiscal 2011. Firms and issuers that meet both of these criteria, and follow the process, will be considered for a one-time 50% refund of its participation fees.

Firms and issuers will have to apply for relief using a form that’s available on the OSC website. There is no cost for applying, and application forms must be submitted by March 31.

The commission says that the fee relief initiative “has been developed specifically for market participants dealing with challenging conditions that may have resulted in decreased revenues and market capitalization.”

The move will impact the OSC’s own balance sheet however, reducing its revenues for 2013/2014, and impacting its ability to reach cost recovery by the end of fiscal 2016, as originally planned, it notes.

“We are confident that this targeted relief is appropriate and responsive to the difficulties faced by some of our stakeholders, but will still allow us to carry out our important regulatory work,” said Maureen Jensen, executive director and chief administrative officer at the OSC.

Additionally, Jensen notes that the OSC is also planning to re-examine its fee rule earlier than planned, “to ensure it remains appropriate.” The OSC expects to publish the results of its review of its fee rule, and any proposed amendments in the fall, for a 90-day comment period.