It is the general consensus that the current disclosure regime for mutual funds and segregated funds does not give investors meaningful information in a plain English format when they need it most –before they make their decision to buy a fund.
In October 2008, the Joint Forum of Financial Market Regulators (the “Joint Forum”) released its Framework 81-406 Point of Sale Disclosure for Mutual Funds and Segregated Funds. The Framework reflects the regulators vision for a more meaningful and effective disclosure regime. It does not outline specific requirements. Rather it sets out concepts and principles agreed upon by the Canadian Securities Administrators (the “CSA”) and the Canadian Council of Insurance Regulators (“CCIR”) as members of the Joint Forum.
The CSA issued a request for comment seeking feedback from all stakeholders to inform them on issues related to implementation of the Framework and its principles in advance of securities regulators publishing proposed changes to existing securities laws.
