The Investment Dealers Association of Canada is cutting its fees for the five firms that fall under the prime audit jurisdiction of Montreal Exchange.

The IDA says that when the ME became a for profit organization in 2000, it introduced a member regulation fee for firms under its’ prime audit jurisdiction. Although the ME has primary responsibility for the regulation of these firms, the IDA still incurs member regulation costs related to these firms.

The IDA says that these firms could reduce their fees payable to the ME by electing to be under the prime audit jurisdiction of the IDA, but have chosen to remain under the jurisdiction of the ME.

Since the IDA does not believe that fee structures should be a significant determining factor in decisions by members relating to primary audit jurisdiction, its boards has approved a reduction in fees for these firms.

Starting with the final billing for fiscal 2004, these firms’ fees will be reduced by 50% of the excess of their current fees over their Total Association Costs, with the following provisos: if their Total Association Costs are greater than or equal to their current fees, they will not be entitled to a fee reduction; and, no firm should have their fees reduced by more than the regulatory fees paid to the Bourse. The IDA board will review the reduction annually.

“The IDA believes that this action will provide appropriate relief for these firms while continuing the IDA policy of not separating the fees charged for regulation,” it says.