TORONTO, March 28, 2013 /CNW/ - The Canadian Securities Administrators
(CSA) are implementing new requirements to ensure all investors receive
essential information about the costs and performance of their
investments. The new requirements apply to all firms registered to deal
in securities or act as portfolio managers. The new requirements are
set out in amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations
The CSA are taking these important steps as research by the CSA, among others, shows that many investors currently do not receive this
vital information. Providing investors with clear and meaningful
information about the costs and performance of their investments will
enable them to assess their progress toward their investing goals and
the value of professional advice they receive.
"If Canadians have the right tools to better understand the costs and
performance of their investments, they will be able to make more
informed investment decisions," said Bill Rice, Chair of the CSA and
Chair and Chief Executive Officer of the Alberta Securities Commission.
"Under the new requirements, all dealers and portfolio managers will
provide the same essential information to investors, which presents an
opportunity to enhance their relationship with their clients."
Investors can expect new cost disclosure that includes:
at account opening, what product and service costs they can expect to
at the time of a transaction, the transaction cost and any deferred
annually, a summary in dollar terms of what they were charged and any
other fees paid to the firm, such as trailing commissions and
commissions on bond trades.
Investors can expect a new annual investment performance report that
how much they have contributed and what it is worth as of the report
deposits and withdrawals for the past year and since their account was
percentage returns for their account over one, three, five and 10 years
and since it was opened.
The new requirements under NI 31-103 also include enhancements to
The amendments will take effect on July 15, 2013, to allow time for
ministerial approvals that are required in some jurisdictions. They
will then be phased-in over three years, so that firms can develop,
test and implement the necessary systems, as well as compile the
information they will need in order to generate the new reports to
The Notice of Amendments is available on CSA members' websites.
The CSA, the council of the securities regulators of Canada's provinces
and territories, co-ordinates and harmonizes regulation for the
Canadian capital markets.
SOURCE: Canadian Securities Administrators
For further information:
Alberta Securities Commission
Ontario Securities Commission
Autorité des marchés financiers
British Columbia Securities Commission
The Manitoba Securities Commission
New Brunswick Securities Commission
Nova Scotia Securities Commission
Financial and Consumer Affairs Authority of Saskatchewan
The Office of the Superintendent of Securities, P.E.I.
Financial Services Regulation Division of Newfoundland and Labrador
Office of the Yukon Superintendent of Securities
Nunavut Securities Office
Northwest Territories Securities Office