The Ontario Securities Commission (OSC) today published OSC Staff Notice 33-730 Capital calculations for investment counsel/portfolio managers to remind investment counsel/portfolio managers (portfolio managers) of the capital requirements under Ontario Securities law.

All portfolio managers are required under the Ontario Securities Act to prepare monthly capital calculations based on financial statements prepared in accordance with Canadian generally accepted accounting principles.

Compliance staff of the OSC have noticed a slight increase in the number of portfolio managers that are deficient in meeting the minimum capital requirements.

The notice describes the recommended terms and conditions that may be imposed on a portfolio manager’s registration when there is a capital deficiency and highlights key changes to capital requirements under proposed National Instrument 31-103 Registration Requirements (NI 31-103).