A registered firm is subject to ongoing financial requirements, including financial reporting, working capital and insurance requirements.
Financial reporting requirements
In general, each registered firm must submit to the OSC not more than 90 days after the end of its financial year:
- a copy of its audited annual financial statements for the financial year, and
- a completed Form 31-103F1 Calculation of Excess Working Capital for the end of the financial year and the immediately preceding financial year.
For more information, see sections 12.10 to 12.15 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103).
Investment dealers and mutual fund dealers
Investment dealers that are a member of the Investment Industry Regulatory Organization of Canada (IIROC) should refer to the IIROC website to determine the financial reporting requirements that apply to them.
Mutual fund dealers that are a member of the Mutual Fund Dealers Association of Canada (MFDA) should refer to the MFDA website to determine the financial reporting requirements that apply to them.
If your firm is a member of a self-regulatory organization (SRO) and is also registered in multiple categories, OSC financial reporting requirements as described above, may also apply.
Working capital requirements
Registered firms must calculate their excess working capital position using Form 31-103F1 Calculation of Excess Working Capital. Firms must ensure that their excess working capital is not less than zero for two consecutive days.
If a registered firm is capital deficient, the firm should notify the OSC and correct the deficiency as soon as possible. In general, OSC staff will recommend imposing terms and conditions on the firm’s registration. For more information, see section 12.1 of NI 31-103.
Insurance and bonding requirements
All registered firms must maintain bonding or insurance that contains certain specific clauses and coverage. See sections 12.3 to 12.5 of NI 31-103 for details on how to calculate the amount of bonding and insurance required for a dealer, adviser or investment fund manager.
A firm must notify the OSC immediately if there are any changes to, claims made under, or cancellation of its bonding or insurance policy.
For more information: