Canadian Securities Administrators

Canadian Securities Administrators

August 12, 2011 11:20 ET

Canadian Securities Regulators Proceed With Stage 2 of Point of Sale Disclosure for Mutual Funds

TORONTO, ONTARIO--(Marketwire - Aug. 12, 2011) - The Canadian Securities Administrators (CSA) today published for comment proposed amendments to NI 81-101 Mutual Fund Prospectus Disclosure, which will allow delivery of the Fund Facts document to satisfy the current prospectus delivery requirements. Under current securities legislation, a prospectus must be delivered to an investor within two days of buying a mutual fund.

The amendments represent Stage 2 of the CSA's implementation of the point of sale disclosure initiative for mutual funds, which is intended to provide investors with more meaningful and effective disclosure.

Central to this initiative is the Fund Facts document. It is in plain language, no more than two pages double-sided and highlights key information about a mutual fund that is important to investors. As of July 8, 2011, a Fund Facts document for each class or series of a mutual fund must be filed with the CSA and made available upon request and on the mutual fund's or mutual fund manager's website.

"The Fund Facts is a short, easy-to-read document that sets out the key features of a mutual fund," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. "The CSA's proposals will make sure that the Fund Facts gets into the hands of investors in a timely fashion to allow them to better understand what they have purchased."

No changes have been made to a mutual fund's obligation to file its prospectus with the CSA, to make it available to investors on a website, or to deliver the prospectus free of charge to investors upon request.

The proposed amendments are expected to be adopted in each Canadian jurisdiction. Some jurisdictions require legislative amendments in order to implement the proposals. The comment period is open until November 10, 2011.

The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

Richard Gilhooley Mark Dickey
British Columbia Securities Commission Alberta Securities Commission
604-899-6713 403-297-4481
Sylvain Théberge Carolyn Shaw-Rimmington
Autorité des marchés financiers Ontario Securities Commission
514-940-2176 416-593-2361
Ainsley Cunningham Wendy Connors-Beckett
Manitoba Securities Commission New Brunswick Securities Commission
204-945-4733 506-643-7745
Natalie MacLellan Jennifer Anderson
Nova Scotia Securities Commission Saskatchewan Financial Services Commission
902-424-8586 306-798-4160
Janice Callbeck Doug Connolly
PEI Securities Office Financial Services Regulation Div.
Office of the Attorney General Newfoundland and Labrador
902-368-6288 709-729-2594
Graham Lang Louis Arki
Yukon Securities Registry Nunavut Securities Office
867-667-5466 867-975-6587
Donn MacDougall
Northwest Territories
Securities Office

Contact Information

  • Autorite des marches financiers
    Sylvain Theberge