Fundserv has maintained its standard pricing for members constant for more than 30 years. In that time, the industry has grown immensely and Fundserv has kept pace with these changes, continually working to offer the support the industry needs to serve Canadian investors.
Fundserv must continue to invest in its infrastructure in order to support the security and availability of settlement and clearing services for its members and must continue to meet inflationary pressures and the rising cost of compliance. Similar to services such as Ad-hoc Money Movement (A$M), myserv and Non-Financial Updates (NFU), Fundserv plans to continue the practice of introducing new services that help the industry reduce time, cost and risk.
To respond to these increasing demands, Fundserv is announcing a change to its pricing. Please note that Fundserv will continue to operate in a cost-recovery model and the practice of rebating to members.
Subject to regulatory approval by the Ontario Securities Commission (OSC), effective December 1, 2024, Fundserv is intending to:
- increase the existing network fixed fee, the file size fee and the file transfer fee that are applicable to all members (Distributors, Intermediaries and Manufacturers), and
- update the existing tier ranges of the tiered transaction fees for Manufacturers.
The proposed changes are set out below.
Proposed fee rate changes applicable to all members
| Type of fee | Current | Proposed |
|---|---|---|
| Distributor network fixed fee | $100 minimum | $200/month |
| Distributor file size fee per 1,000 bytes | $ 0.0100 | $ 0.0117 |
| Manufacturer and Intermediary network fixed fee | $ 1,500 | $ 1,750 |
| Manufacturer and Intermediary file size fee per 1,000 bytes | $ 0.0075 | $ 0.0077 |
| Transfer fee per file (all members) | $ 0.25 | $ 0.30 |
Proposed changes to tiered transaction fees for Manufacturers
| Current | Proposed | |||
|---|---|---|---|---|
| Tiers | Transactions | Current price | Transactions | New price |
| 1 | 0 – 500 | – | 0 – 500 | $1.10 |
| 2 | 501 – 2,000 | $1.25 | 501-5,000 | $1.00 |
| 3 | 2,001 – 7,500 | $1.10 | 5,001-20,000 | $0.75 |
| 4 | 7,501 – 15,000 | $0.75 | 20,001-100,000 | $0.22 |
| 5 | 15,001 – 25,000 | $0.45 | 100,001-1,000,000 | $0.10 |
| 6 | 25,001 – 50,000 | $0.20 | 1,000,001-2,000,000 | $0.05 |
| 7 | 50,001+ | $0.10 | 2,000,000+ | $0.01 |
Comment period now closed
Fundserv members and members of the public are invited to review the proposed fee changes described above and submit their feedback to Fundserv and the OSC no later than 5 pm ET on June 3, 2024.
Comments can be sent to Fundserv at comments@fundserv.com and copies should also be forwarded to the OSC Trading & Markets Division by email at marketregulation@osc.gov.on.ca or by mail or fax as set out below:
Manager, Trading & Markets, Clearing
Trading & Markets Division
Ontario Securities Commission
Suite 1903, Box 55
20 Queen Street West
Toronto, Ontario, M5H 3S8
Fax: 416.595.8940
All comments will be posted on the OSC public website.
The proposed fee changes are subject to amendments based on comments received from the OSC, Fundserv members and members of the public. Any amendments to the fees set out above will be communicated to Fundserv members prior to implementation.
Subject to regulatory approval by the OSC, the fee changes are expected to come into effect on December 1, 2024.
This notice is sent to our members in accordance with Fundserv Recognition Order and the terms of the customer contracts and will be made available to the public pursuant to the OSC’s request for comment on the proposed fee changes.